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






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






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






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






5. American Stock Exchange






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






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






8. An order to a broker to sell or buy stocks or commodities at the prevailing market price






9. A market characterized by rising prices for securities






10. 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






11. An increase in price or value of a stock






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






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






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






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






16. 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)






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






18. Price/earnings






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






20. Also known as secondary and follow-on offering






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






22. 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






23. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






24. Financing for new - often high-risk ventures






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






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






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






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






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






30. Buying a stock at a price you set






31. Financing for new - often high-risk ventures






32. When issuer sells the entire issue to the underwriters






33. 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






34. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






36. A market characterized by falling prices for securities






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






38. New York Stock Exchange






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






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






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






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






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






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






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






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






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






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






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






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