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






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






3. 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.






4. Also known as secondary and follow-on offering






5. New York Stock Exchange






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






7. 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






8. 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






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






10. An increase in price or value of a stock






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






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






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






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






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






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






17. Amount that you invest in securities






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






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






20. An increase in price or value of a stock






21. Financing for new - often high-risk ventures






22. Buying a stock at a price you set






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






24. Financing for new - often high-risk ventures






25. 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)






26. 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






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






28. When issuer sells the entire issue to the underwriters






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






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 rising prices for securities






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






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






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






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






36. New York Stock Exchange






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






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






39. A market characterized by falling prices for securities






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






41. Securities initially offered only to existing owners






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






43. American Stock Exchange






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






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






46. 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






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






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






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






50. When issuer sells the entire issue to the underwriters







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