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






2. Buying a stock at a price you set






3. Equity financing for nonpublic companies






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






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






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






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






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






9. 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.






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






11. An increase in price or value of a stock






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






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






14. Securities initially offered only to existing owners






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






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






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






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






19. Price/earnings






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






21. 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






22. Financing for new - often high-risk ventures






23. A market characterized by rising prices for securities






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






25. An increase in price or value of a stock






26. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






28. 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)






29. 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)






30. When issuer sells the entire issue to the underwriters






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






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






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






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






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






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






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






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






39. Amount that you invest in securities






40. 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






41. 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






42. A market characterized by falling prices for securities






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






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






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






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






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






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






49. Securities initially offered only to existing owners






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