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Test your basic knowledge |
Stock Market Basics
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Subjects
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industries
,
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
AMEX
red herring
OTC [Over-the-counter]
Bull market
2. A preliminary prospectus among investor to generate interest in the stock offering
OTC [Over-the-counter]
red herring
stop-sell v. stop-buy
Penny stock
3. Another name for IPO - b/c shares are not available to the public before the IPO
unseasoned equity offering
stop-limit order
Portfolio
general cash offer
4. Bid- price dealer is willing to pay - ask- price dealer will sell at
bid v. ask
OTC [Over-the-counter]
Net change
Mutual fund
5. A stock selling for less that $1/share; usually high risk
NYSE minimum requirements
Penny stock
Stop order
red herring
6. An order to a broker to sell (buy) when the price of a security falls (rises) to a designated level
Stop order
rights offer
dealer v. broker
Common stock
7. Securities market where dealers buy and sell securities for their own inventories; NASDAQ is one example
Market order
private equity
firm commitment underwriting
over-the counter market
8. Buying a stock at a price you set
NYSE Hybrid Market
NASDAQ
Discount broker
Limit order
9. The person(s) resposible for implementing a fund's investing strategy and managing its portfolio trading activities
NYSE Hybrid Market
Fund manager
Market order
Securities
10. The system that prints or dsplays last sale prices and the volume of securities transactions on exchanges on a moving tape
Stop order
Dividend
Ticker
NASDAQ
11. Dealer- has inventory like car dealer - broker- brings buyers and sellers together (like real estate broker)
dealer v. broker
stop-limit order
syndicate
NASDAQ
12. A group of underwriters formed to share the risk and to help sell an issue
limit v. stop orders
Stock split
syndicate
OTC [Over-the-counter]
13. 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)
NYSE Hybrid Market
Stock split
Penny stock
Penny stock
14. 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
NYSE Hybrid Market
No-load
OTC [Over-the-counter]
stop-sell v. stop-buy
15. A person who buys or sells stocks for another in exchange for a commission
Stock broker
NYSE
Blue chip stock
syndicate
16. American Stock Exchange
P / E
AMEX
Dow Jones idustrial average
bid v. ask
17. Equity financing for nonpublic companies
private equity
third market v. fourth market
Discount broker
Bull market
18. Another name for IPO - b/c shares are not available to the public before the IPO
unseasoned equity offering
Bear market
stop-limit order
No-load
19. A person who buys or sells stocks for another in exchange for a commission
Stock broker
OTC [Over-the-counter]
over-the counter market
P / E
20. All of the investments - including stocks - bonds - mutual funds - options - and commodities - that are traded
Stock broker
Securities
NYSE minimum requirements
Market order
21. 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
third market v. fourth market
prospectus
Stock broker
private equity
22. Mutual fund in which shares are sold without a commission or sales charge
Mutual fund
No-load
Limit order
firm commitment underwriting
23. Securities or SEO offered to the public on a first-come first serve basis
Stock split
general cash offer
NYSE Hybrid Market
stop-sell v. stop-buy
24. Stop order is where the customer specifies a stop price in which once it's reached - it is converted into a market order
stop-limit order
Securities
red herring
limit v. stop orders
25. Difference between closing price of previous day and current day
Net change
dealer v. broker
red herring
Preferred Stock
26. 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
P / E
third market v. fourth market
venture capital VC
Dividend
27. Financing for new - often high-risk ventures
dealer v. broker
NYSE minimum requirements
venture capital VC
prospectus
28. A corporation's first offer to sell stock to the public
IPO [Initial Public Offering]
NYSE Hybrid Market
Stock
Preferred Stock
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
stop-sell v. stop-buy
three ways of the secondary market
Portfolio
over-the counter market
30. The person(s) resposible for implementing a fund's investing strategy and managing its portfolio trading activities
Portfolio
Penny stock
Fund manager
stop-sell v. stop-buy
31. Securities initially offered only to existing owners
private equity
rights offer
NYSE
dealer v. broker
32. Fund that pools the savings of many individuals and invests this money in a variety of stocks - bonds - and other financial assets
Mutual fund
AMEX
seasoned equity offering (SEO)
bid v. ask
33. Securities or SEO offered to the public on a first-come first serve basis
limit v. stop orders
NYSE
general cash offer
P / E
34. Financing for new - often high-risk ventures
NASDAQ
venture capital VC
Fund manager
private equity
35. NASDAQ was opened to his which is a website that allowed investors to trade directly with one another;
dealer v. broker
stop-limit order
Market order
electronic communications networks (ECNs)
36. All of the investments - including stocks - bonds - mutual funds - options - and commodities - that are traded
three ways of the secondary market
rights offer
bid v. ask
Securities
37. 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.
Fund manager
NYSE minimum requirements
NASDAQ
best efforts underwriting
38. Detailed acct of company's financial position - its operations - and its investment plans for the future which is submitted to SEC for approval
private equity
Securities
prospectus
Blue chip stock
39. Securities market where dealers buy and sell securities for their own inventories; NASDAQ is one example
limit v. stop orders
firm commitment underwriting
private equity
over-the counter market
40. A certificate documenting the shareholder's ownership in the corporation. There is no guarantee of making money with a stock.
Stop order
limit v. stop orders
Securities
Stock
41. A certificate of debt (usually interest-bearing or discounted) that is issued by a government or corporation in order to raise money
firm commitment underwriting
Mutual fund
Bond
Net change
42. When issuer sells the entire issue to the underwriters
No-load
Stock broker
over-the counter market
firm commitment underwriting
43. Also known as uniform price auction b/c all successful bidders pay the same price
Discount broker
dutch auction underwriting
Discount broker
venture capital VC
44. Stop order is where the customer specifies a stop price in which once it's reached - it is converted into a market order
Potential loss
Bear market
seasoned equity offering (SEO)
limit v. stop orders
45. A list of the financial assets held by an individual or a bank or other financial institution
Portfolio
No-load
Dow Jones idustrial average
dutch auction underwriting
46. American Stock Exchange
general cash offer
AMEX
Stop order
Discount broker
47. Stock from nationally recognized companies which dominate the industry often having annual revenue of one billion or more
seasoned equity offering (SEO)
Blue chip stock
Stock
Net change
48. Once the stock price reaches the preset stop price the order is converted ito a limit order
Net change
Preferred Stock
dealer v. broker
stop-limit order
49. An order to a broker to sell or buy stocks or commodities at the prevailing market price
venture capital VC
NYSE v. NASDAQ
dutch auction underwriting
Market order
50. A group of underwriters formed to share the risk and to help sell an issue
syndicate
IPO [Initial Public Offering]
Stop order
Ticker
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