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Test your basic knowledge |
Stock Market Basics
Start Test
Study First
Subjects
:
industries
,
business-skills
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 was opened to his which is a website that allowed investors to trade directly with one another;
general cash offer
Net change
Appreciation
electronic communications networks (ECNs)
2. A stock selling for less that $1/share; usually high risk
Mutual fund
Fund manager
Penny stock
best efforts underwriting
3. The person(s) resposible for implementing a fund's investing strategy and managing its portfolio trading activities
Fund manager
Blue chip stock
NYSE minimum requirements
bid v. ask
4. NASDAQ is a computer network with no physical location and has a multiple market maker system rather than a specialist system
venture capital VC
NYSE v. NASDAQ
Dow Jones idustrial average
OTC [Over-the-counter]
5. American Stock Exchange
AMEX
No-load
Bear market
Stop order
6. Buys & sells for clients at a reduced commission. They offer little or no investment advice.
dealer v. broker
Discount broker
best efforts underwriting
seasoned equity offering (SEO)
7. The system that prints or dsplays last sale prices and the volume of securities transactions on exchanges on a moving tape
No-load
Dividend
over-the counter market
Ticker
8. An increase in price or value of a stock
Stock split
Appreciation
Common stock
NYSE
9. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory
venture capital VC
three ways of the secondary market
Stock broker
stop-sell v. stop-buy
10. Stock whose holders are guaranteed priority in the payment of dividends but whose holders have no voting rights
Appreciation
Preferred Stock
AMEX
stop-limit order
11. Securities initially offered only to existing owners
NYSE v. NASDAQ
Bull market
rights offer
NASDAQ
12. An increase in price or value of a stock
Ticker
Portfolio
Appreciation
Bond
13. That part of the earnings of a corporation that is distributed to its shareholders
stop-sell v. stop-buy
Bull market
Dividend
Dow Jones idustrial average
14. A stock selling for less that $1/share; usually high risk
NYSE
Penny stock
Potential loss
stop-limit order
15. Another name for IPO - b/c shares are not available to the public before the IPO
stop-limit order
Stock
NASDAQ
unseasoned equity offering
16. A group of underwriters formed to share the risk and to help sell an issue
syndicate
Dow Jones idustrial average
NYSE minimum requirements
three ways of the secondary market
17. Once the stock price reaches the preset stop price the order is converted ito a limit order
NYSE
Blue chip stock
stop-limit order
AMEX
18. Fund that pools the savings of many individuals and invests this money in a variety of stocks - bonds - and other financial assets
dealer v. broker
Dividend
Mutual fund
NYSE minimum requirements
19. An order to a broker to sell or buy stocks or commodities at the prevailing market price
venture capital VC
No-load
Market order
third market v. fourth market
20. Stock from nationally recognized companies which dominate the industry often having annual revenue of one billion or more
Preferred Stock
Fund manager
Blue chip stock
unseasoned equity offering
21. Underwriter doesn't guarantee any particular amount of money to the issuer
Stock broker
NYSE v. NASDAQ
best efforts underwriting
general cash offer
22. Underwriter doesn't guarantee any particular amount of money to the issuer
Penny stock
best efforts underwriting
prospectus
rights offer
23. When issuer sells the entire issue to the underwriters
OTC [Over-the-counter]
Dividend
bid v. ask
firm commitment underwriting
24. Securities market where dealers buy and sell securities for their own inventories; NASDAQ is one example
over-the counter market
Common stock
P / E
rights offer
25. A computerized data system to provide brokers with price quotations for securities traded over the counter
Bear market
best efforts underwriting
NASDAQ
Discount broker
26. A list of the financial assets held by an individual or a bank or other financial institution
Portfolio
NASDAQ
OTC [Over-the-counter]
Bull market
27. A preliminary prospectus among investor to generate interest in the stock offering
Preferred Stock
three ways of the secondary market
red herring
private equity
28. Financing for new - often high-risk ventures
venture capital VC
dealer v. broker
NYSE Hybrid Market
dealer v. broker
29. 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
Market order
Dow Jones idustrial average
rights offer
NYSE Hybrid Market
30. Also known as uniform price auction b/c all successful bidders pay the same price
bid v. ask
dutch auction underwriting
IPO [Initial Public Offering]
Securities
31. A market characterized by rising prices for securities
Bear market
prospectus
Bull market
NYSE minimum requirements
32. 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
venture capital VC
NYSE Hybrid Market
Bond
private equity
33. When issuer sells the entire issue to the underwriters
NYSE Hybrid Market
NYSE minimum requirements
firm commitment underwriting
NYSE v. NASDAQ
34. A person who buys or sells stocks for another in exchange for a commission
Stock broker
NASDAQ
No-load
Potential loss
35. Stock from nationally recognized companies which dominate the industry often having annual revenue of one billion or more
NYSE v. NASDAQ
Appreciation
Blue chip stock
Penny stock
36. The market in which securities that are not listed on exchanges are traded
syndicate
OTC [Over-the-counter]
venture capital VC
NYSE v. NASDAQ
37. Also known as secondary and follow-on offering
AMEX
P / E
seasoned equity offering (SEO)
dutch auction underwriting
38. All of the investments - including stocks - bonds - mutual funds - options - and commodities - that are traded
NYSE minimum requirements
Securities
No-load
Stop order
39. Difference between closing price of previous day and current day
Net change
NASDAQ
dutch auction underwriting
stop-limit order
40. Buying a stock at a price you set
Securities
Limit order
Market order
firm commitment underwriting
41. The system that prints or dsplays last sale prices and the volume of securities transactions on exchanges on a moving tape
Bond
Ticker
seasoned equity offering (SEO)
third market v. fourth market
42. A list of the financial assets held by an individual or a bank or other financial institution
over-the counter market
Portfolio
rights offer
syndicate
43. All of the investments - including stocks - bonds - mutual funds - options - and commodities - that are traded
Securities
red herring
IPO [Initial Public Offering]
IPO [Initial Public Offering]
44. A certificate documenting the shareholder's ownership in the corporation. There is no guarantee of making money with a stock.
Ticker
Bond
Stock
Net change
45. A measure of stock market prices based on thirty leading companies of the new york stock exchange and nasdaq
third market v. fourth market
Dow Jones idustrial average
over-the counter market
prospectus
46. Price/earnings
firm commitment underwriting
Potential loss
P / E
Market order
47. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory
dealer v. broker
three ways of the secondary market
Stop order
OTC [Over-the-counter]
48. The person(s) resposible for implementing a fund's investing strategy and managing its portfolio trading activities
Market order
Fund manager
private equity
Net change
49. Detailed acct of company's financial position - its operations - and its investment plans for the future which is submitted to SEC for approval
prospectus
Common stock
Discount broker
OTC [Over-the-counter]
50. A market characterized by falling prices for securities
NYSE minimum requirements
venture capital VC
Bear market
third market v. fourth market