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






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






3. 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






4. New York Stock Exchange






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






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






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






8. New York Stock Exchange






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






10. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






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






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






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






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






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






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






18. An increase in price or value of a stock






19. When issuer sells the entire issue to the underwriters






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






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






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






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






24. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






25. American Stock Exchange






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






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






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






29. A market characterized by falling prices for securities






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






31. Financing for new - often high-risk ventures






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






33. Financing for new - often high-risk ventures






34. Also known as secondary and follow-on offering






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






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






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






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






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






41. Buying a stock at a price you set






42. Also known as secondary and follow-on offering






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






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






45. A market characterized by rising prices for securities






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






47. 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






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






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






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