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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. A market characterized by falling prices for securities






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






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






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






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






6. American Stock Exchange






7. Securities initially offered only to existing owners






8. A market characterized by rising prices for securities






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






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






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






12. 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.






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






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






15. An increase in price or value of a stock






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






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






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






19. Amount that you invest in securities






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






22. A market characterized by rising prices for securities






23. 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.






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






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






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






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






28. 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)






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






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






31. 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






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






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






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






35. A market characterized by falling prices for securities






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






37. Order to sell shares if the stock price falls to a specified stop price above the current stock price; also called stop-loss b/c it is usually intended to limit losses on a long position






38. 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






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






40. Price/earnings






41. Equity financing for nonpublic companies






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






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






45. Financing for new - often high-risk ventures






46. Price/earnings






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






48. Equity financing for nonpublic companies






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






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