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






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






3. Also known as secondary and follow-on offering






4. New York Stock Exchange






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






6. 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






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






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






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






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






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






12. Amount that you invest in securities






13. A market characterized by rising prices for securities






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






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






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






17. 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.






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






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






20. Securities initially offered only to existing owners






21. Equity financing for nonpublic companies






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






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






24. When issuer sells the entire issue to the underwriters






25. Equity financing for nonpublic companies






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






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






28. 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.






29. 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






30. When issuer sells the entire issue to the underwriters






31. American Stock Exchange






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






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






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






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






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






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






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






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






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






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






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






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






44. 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






45. Price/earnings






46. Financing for new - often high-risk ventures






47. Securities initially offered only to existing owners






48. Amount that you invest in securities






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






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