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






2. Equity financing for nonpublic companies






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






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






5. The person(s) resposible for implementing a fund's investing strategy and managing its portfolio trading activities






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






7. When issuer sells the entire issue to the underwriters






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






9. A corporation's first offer to sell stock to the public






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






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






12. American Stock Exchange






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






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






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






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






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






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






19. Buying a stock at a price you set






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






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






22. A market characterized by falling prices for securities






23. 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






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






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






26. All of the investments - including stocks - bonds - mutual funds - options - and commodities - that are traded






27. 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






28. When issuer sells the entire issue to the underwriters






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






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






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






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






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






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






35. 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






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






37. Securities initially offered only to existing owners






38. Amount that you invest in securities






39. Financing for new - often high-risk ventures






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






41. Also known as secondary and follow-on offering






42. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






43. A market characterized by rising prices for securities






44. An increase in price or value of a stock






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






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






47. Also known as secondary and follow-on offering






48. 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)






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






50. Equity financing for nonpublic companies