Test your basic knowledge |

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. A preliminary prospectus among investor to generate interest in the stock offering






2. A market characterized by rising prices for securities






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






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






5. Also known as uniform price auction b/c all successful bidders pay the same price






6. 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






7. A market characterized by rising prices for securities






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






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






10. An increase in price or value of a stock






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






12. Also known as secondary and follow-on offering






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






14. Dealer- has inventory like car dealer - broker- brings buyers and sellers together (like real estate broker)






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






16. Securities initially offered only to existing owners






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






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






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






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






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






22. A measure of stock market prices based on thirty leading companies of the new york stock exchange and nasdaq






23. Also known as secondary and follow-on offering






24. NASDAQ was opened to his which is a website that allowed investors to trade directly with one another;






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






26. 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)






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






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






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






30. Buying a stock at a price you set






31. Stock whose holders are guaranteed priority in the payment of dividends but whose holders have no voting rights






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






33. American Stock Exchange






34. An increase in price or value of a stock






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






36. A measure of stock market prices based on thirty leading companies of the new york stock exchange and nasdaq






37. Amount that you invest in securities






38. 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.






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






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






41. Also known as uniform price auction b/c all successful bidders pay the same price






42. A market characterized by falling prices for securities






43. When issuer sells the entire issue to the underwriters






44. When issuer sells the entire issue to the underwriters






45. American Stock Exchange






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






47. An order to a broker to sell (buy) when the price of a security falls (rises) to a designated level






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






49. Detailed acct of company's financial position - its operations - and its investment plans for the future which is submitted to SEC for approval






50. Financing for new - often high-risk ventures