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 secondary and follow-on offering






2. A market characterized by rising prices for securities






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






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






5. When issuer sells the entire issue to the underwriters






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






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






8. American Stock Exchange






9. Financing for new - often high-risk ventures






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






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






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






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






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






16. Also known as secondary and follow-on offering






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






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






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






20. Equity financing for nonpublic companies






21. Securities initially offered only to existing owners






22. 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






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






24. When issuer sells the entire issue to the underwriters






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






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






27. An increase in price or value of a stock






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






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






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






31. Buying a stock at a price you set






32. Amount that you invest in securities






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






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






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






36. A market characterized by falling prices for securities






37. An increase in price or value of a stock






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






39. Securities initially offered only to existing owners






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






41. A market characterized by rising prices for securities






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






43. 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






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






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






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






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






48. New York Stock Exchange






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






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