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. Amount that you invest in securities






3. 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






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






5. American Stock Exchange






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






7. Another name for IPO - b/c shares are not available to the public before the IPO






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






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






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






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






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






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)






14. Equity financing for nonpublic companies






15. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






17. Financing for new - often high-risk ventures






18. Securities initially offered only to existing owners






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






20. Buying a stock at a price you set






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






22. New York Stock Exchange






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






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






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






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






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






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






29. 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






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






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






32. Buying a stock at a price you set






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






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






35. A market characterized by rising prices for securities






36. 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






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






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






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






40. Another name for IPO - b/c shares are not available to the public before the IPO






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






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






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






44. When issuer sells the entire issue to the underwriters






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






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






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






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






49. 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






50. Securities initially offered only to existing owners