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. Equity financing for nonpublic companies






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






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






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






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






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






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






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






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






10. A market characterized by rising prices for securities






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






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






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






14. 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






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






16. 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






17. Price/earnings






18. Equity financing for nonpublic companies






19. New York Stock Exchange






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






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






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. 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






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






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






26. Securities initially offered only to existing owners






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






28. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






29. 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.






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






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






32. 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






33. Buying a stock at a price you set






34. An increase in price or value of a stock






35. Amount that you invest in securities






36. 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)






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






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






39. Amount that you invest in securities






40. 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)






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






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






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






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






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






46. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






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






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






50. Buying a stock at a price you set