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. American Stock Exchange






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






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






4. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






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






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






8. Amount that you invest in securities






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






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






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






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






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






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






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






16. 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






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






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






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






20. 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.






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






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






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






24. A market characterized by rising prices for securities






25. Amount that you invest in securities






26. An increase in price or value of a stock






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






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






29. When issuer sells the entire issue to the underwriters






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






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






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






33. Buying a stock at a price you set






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






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






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






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






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






39. When issuer sells the entire issue to the underwriters






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






41. Equity financing for nonpublic companies






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






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






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






45. Price/earnings






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






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






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






49. American Stock Exchange






50. 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)