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. An increase in price or value of a stock






2. Securities initially offered only to existing owners






3. Amount that you invest in securities






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






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






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






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






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






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






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






11. A market characterized by falling prices for securities






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






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






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






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






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






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






18. A market characterized by rising prices for securities






19. 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)






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






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






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






23. 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






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






25. 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






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






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






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






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






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






31. A market characterized by falling prices for securities






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






33. 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






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






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






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






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






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






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






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






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






42. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






43. Buying a stock at a price you set






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






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






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






47. 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.






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






49. Securities initially offered only to existing owners






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