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Stock Market Basics

Instructions:
  • Answer 50 questions in 15 minutes.
  • If you are not ready to take this test, you can study here.
  • Match each statement with the correct term.
  • Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. Amount that you invest in securities






2. Buys & sells for clients at a reduced commission. They offer little or no investment advice.






3. Financing for new - often high-risk ventures






4. Buying a stock at a price you set






5. Trading that occurs off the exchange on which the security is listed and fourth market is the direct trading of exchange-listed securities maong investors






6. Mutual fund in which shares are sold without a commission or sales charge






7. A certificate documenting the shareholder's ownership in the corporation. There is no guarantee of making money with a stock.






8. The system that prints or dsplays last sale prices and the volume of securities transactions on exchanges on a moving tape






9. Price/earnings






10. New York Stock Exchange






11. A division of shares of a company into a larger number of shares. (A 2 for 1 allows a shareholder to double the number of shares but worth one half of their previous value - like trading a $10 for 2 $5's)






12. Stop order is where the customer specifies a stop price in which once it's reached - it is converted into a market order






13. Once the stock price reaches the preset stop price the order is converted ito a limit order






14. NASDAQ is a computer network with no physical location and has a multiple market maker system rather than a specialist system






15. That part of the earnings of a corporation that is distributed to its shareholders






16. Stock from nationally recognized companies which dominate the industry often having annual revenue of one billion or more






17. Fund that pools the savings of many individuals and invests this money in a variety of stocks - bonds - and other financial assets






18. A market characterized by falling prices for securities






19. Difference between closing price of previous day and current day






20. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






21. A person who buys or sells stocks for another in exchange for a commission






22. Securities market where dealers buy and sell securities for their own inventories; NASDAQ is one example






23. A stock selling for less that $1/share; usually high risk






24. When issuer sells the entire issue to the underwriters






25. A certificate of debt (usually interest-bearing or discounted) that is issued by a government or corporation in order to raise money






26. For efficient trading - not used in 1. less liquid stocks 2. during the opening and close of trading sessions 3. during times of market duress






27. Buying a stock at a price you set






28. Securities or SEO offered to the public on a first-come first serve basis






29. The market in which securities that are not listed on exchanges are traded






30. Equity financing for nonpublic companies






31. Securities initially offered only to existing owners






32. A group of underwriters formed to share the risk and to help sell an issue






33. The market in which securities that are not listed on exchanges are traded






34. A group of underwriters formed to share the risk and to help sell an issue






35. Trading that occurs off the exchange on which the security is listed and fourth market is the direct trading of exchange-listed securities maong investors






36. Amount that you invest in securities






37. Bid- price dealer is willing to pay - ask- price dealer will sell at






38. Another name for IPO - b/c shares are not available to the public before the IPO






39. Underwriter doesn't guarantee any particular amount of money to the issuer






40. Underwriter doesn't guarantee any particular amount of money to the issuer






41. A division of shares of a company into a larger number of shares. (A 2 for 1 allows a shareholder to double the number of shares but worth one half of their previous value - like trading a $10 for 2 $5's)






42. A computerized data system to provide brokers with price quotations for securities traded over the counter






43. 1. at least 2200 shareholders and average monthly trading volume for the most recent six months must be at least 100000 shares 2. at least 1.1 million stocks shares in public hands 3. must be at $100 million in market value ($60 million for IPOS) 4.






44. A list of the financial assets held by an individual or a bank or other financial institution






45. Another name for IPO - b/c shares are not available to the public before the IPO






46. A certificate documenting the shareholder's ownership in the corporation. There is no guarantee of making money with a stock.






47. Securities initially offered only to existing owners






48. The most basic form of ownership - including voting rights on major issues - in a company






49. A person who buys or sells stocks for another in exchange for a commission






50. A market characterized by rising prices for securities







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