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






2. 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.






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






4. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






5. 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






6. Financing for new - often high-risk ventures






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






8. Equity financing for nonpublic companies






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






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






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






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






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






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






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






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






17. 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






18. Securities initially offered only to existing owners






19. Also known as secondary and follow-on offering






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






21. New York Stock Exchange






22. A preliminary prospectus among investor to generate interest in the stock offering






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






24. 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






25. Buying a stock at a price you set






26. An increase in price or value of a stock






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






28. An increase in price or value of a stock






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






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






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






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






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






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






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






36. Price/earnings






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






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






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






40. Amount that you invest in securities






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






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)






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






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






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






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






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






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






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






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