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






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






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






4. 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






5. 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






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






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






8. 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






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






10. Buying a stock at a price you set






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






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






13. Once the stock price reaches the preset stop price the order is converted ito a limit order






14. New York Stock Exchange






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






16. A market characterized by falling prices for securities






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






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






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






20. Buying a stock at a price you set






21. Once the stock price reaches the preset stop price the order is converted ito a limit order






22. 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.






23. Amount that you invest in securities






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






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






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






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






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






29. American Stock Exchange






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






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






32. 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.






33. Also known as secondary and follow-on offering






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






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






36. Securities initially offered only to existing owners






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






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






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






40. A market characterized by rising prices for securities






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






42. A market characterized by falling prices for securities






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






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






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






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






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






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






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






50. Financing for new - often high-risk ventures