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Test your basic knowledge |
Stock Market Basics
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Subjects
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industries
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business-skills
Instructions:
Answer 50 questions in 15 minutes.
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study here
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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. The market in which securities that are not listed on exchanges are traded
general cash offer
unseasoned equity offering
OTC [Over-the-counter]
NYSE
2. Securities market where dealers buy and sell securities for their own inventories; NASDAQ is one example
over-the counter market
dealer v. broker
NYSE minimum requirements
general cash offer
3. A market characterized by falling prices for securities
P / E
unseasoned equity offering
Bear market
seasoned equity offering (SEO)
4. 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
firm commitment underwriting
NYSE
Fund manager
NYSE Hybrid Market
5. Buying a stock at a price you set
Mutual fund
firm commitment underwriting
dutch auction underwriting
Limit order
6. A certificate documenting the shareholder's ownership in the corporation. There is no guarantee of making money with a stock.
Stock
Blue chip stock
firm commitment underwriting
red herring
7. Also known as uniform price auction b/c all successful bidders pay the same price
dutch auction underwriting
private equity
bid v. ask
NASDAQ
8. 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
electronic communications networks (ECNs)
third market v. fourth market
Common stock
dealer v. broker
9. Detailed acct of company's financial position - its operations - and its investment plans for the future which is submitted to SEC for approval
bid v. ask
bid v. ask
prospectus
stop-limit order
10. Another name for IPO - b/c shares are not available to the public before the IPO
Potential loss
Stop order
NASDAQ
unseasoned equity offering
11. A corporation's first offer to sell stock to the public
IPO [Initial Public Offering]
Stock split
Dow Jones idustrial average
NYSE Hybrid Market
12. When issuer sells the entire issue to the underwriters
prospectus
Dividend
firm commitment underwriting
Stock
13. 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
general cash offer
Ticker
NYSE Hybrid Market
Discount broker
14. A computerized data system to provide brokers with price quotations for securities traded over the counter
NASDAQ
NYSE
Stop order
AMEX
15. Another name for IPO - b/c shares are not available to the public before the IPO
unseasoned equity offering
Bull market
Appreciation
Preferred Stock
16. Mutual fund in which shares are sold without a commission or sales charge
Ticker
Net change
No-load
general cash offer
17. 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.
venture capital VC
Potential loss
NYSE minimum requirements
Penny stock
18. An order to a broker to sell (buy) when the price of a security falls (rises) to a designated level
Potential loss
firm commitment underwriting
Stop order
rights offer
19. Underwriter doesn't guarantee any particular amount of money to the issuer
syndicate
Fund manager
syndicate
best efforts underwriting
20. An order to a broker to sell (buy) when the price of a security falls (rises) to a designated level
Stop order
Ticker
private equity
dealer v. broker
21. A list of the financial assets held by an individual or a bank or other financial institution
OTC [Over-the-counter]
Ticker
three ways of the secondary market
Portfolio
22. Dealer- has inventory like car dealer - broker- brings buyers and sellers together (like real estate broker)
general cash offer
Dividend
Fund manager
dealer v. broker
23. Securities or SEO offered to the public on a first-come first serve basis
private equity
third market v. fourth market
general cash offer
electronic communications networks (ECNs)
24. Difference between closing price of previous day and current day
Mutual fund
dutch auction underwriting
OTC [Over-the-counter]
Net change
25. Equity financing for nonpublic companies
private equity
NASDAQ
venture capital VC
stop-limit order
26. Buys & sells for clients at a reduced commission. They offer little or no investment advice.
Discount broker
dealer v. broker
Common stock
Bull market
27. Securities initially offered only to existing owners
stop-limit order
Stock split
rights offer
Net change
28. Securities or SEO offered to the public on a first-come first serve basis
firm commitment underwriting
dutch auction underwriting
No-load
general cash offer
29. 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
Preferred Stock
stop-sell v. stop-buy
electronic communications networks (ECNs)
Bond
30. NASDAQ was opened to his which is a website that allowed investors to trade directly with one another;
seasoned equity offering (SEO)
electronic communications networks (ECNs)
IPO [Initial Public Offering]
over-the counter market
31. Mutual fund in which shares are sold without a commission or sales charge
No-load
Portfolio
NYSE v. NASDAQ
Stock broker
32. A person who buys or sells stocks for another in exchange for a commission
third market v. fourth market
Stock broker
No-load
dutch auction underwriting
33. A stock selling for less that $1/share; usually high risk
over-the counter market
Penny stock
Ticker
NYSE
34. All of the investments - including stocks - bonds - mutual funds - options - and commodities - that are traded
Securities
seasoned equity offering (SEO)
AMEX
electronic communications networks (ECNs)
35. Stock whose holders are guaranteed priority in the payment of dividends but whose holders have no voting rights
Preferred Stock
three ways of the secondary market
third market v. fourth market
electronic communications networks (ECNs)
36. A preliminary prospectus among investor to generate interest in the stock offering
limit v. stop orders
Stock broker
red herring
AMEX
37. American Stock Exchange
Stock
Dow Jones idustrial average
AMEX
Bond
38. Amount that you invest in securities
Ticker
Potential loss
OTC [Over-the-counter]
Market order
39. The system that prints or dsplays last sale prices and the volume of securities transactions on exchanges on a moving tape
stop-sell v. stop-buy
Ticker
Bond
firm commitment underwriting
40. Fund that pools the savings of many individuals and invests this money in a variety of stocks - bonds - and other financial assets
dutch auction underwriting
Mutual fund
electronic communications networks (ECNs)
third market v. fourth market
41. The market in which securities that are not listed on exchanges are traded
Stock split
Securities
stop-sell v. stop-buy
OTC [Over-the-counter]
42. 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)
dealer v. broker
dealer v. broker
Stock split
limit v. stop orders
43. A stock selling for less that $1/share; usually high risk
Penny stock
stop-sell v. stop-buy
Ticker
OTC [Over-the-counter]
44. 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
electronic communications networks (ECNs)
Bull market
third market v. fourth market
Stock
45. The most basic form of ownership - including voting rights on major issues - in a company
Mutual fund
Common stock
Ticker
OTC [Over-the-counter]
46. 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.
dealer v. broker
NYSE minimum requirements
best efforts underwriting
Fund manager
47. A certificate documenting the shareholder's ownership in the corporation. There is no guarantee of making money with a stock.
firm commitment underwriting
Portfolio
dealer v. broker
Stock
48. A list of the financial assets held by an individual or a bank or other financial institution
limit v. stop orders
Potential loss
venture capital VC
Portfolio
49. Difference between closing price of previous day and current day
Portfolio
Net change
prospectus
Potential loss
50. An increase in price or value of a stock
Appreciation
three ways of the secondary market
general cash offer
NYSE v. NASDAQ
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