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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. A market characterized by rising prices for securities






2. Financing for new - often high-risk ventures






3. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






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






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






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






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






9. 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)






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






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






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






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






14. Also known as secondary and follow-on offering






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






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






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






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






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






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






21. 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






22. American Stock Exchange






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






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






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






26. Buying a stock at a price you set






27. 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






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






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






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






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






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






33. Securities initially offered only to existing owners






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






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






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






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






38. When issuer sells the entire issue to the underwriters






39. Price/earnings






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






41. 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






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






43. Also known as secondary and follow-on offering






44. New York Stock Exchange






45. Price/earnings






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






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






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






49. 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)






50. A market characterized by falling prices for securities







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