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






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






3. New York Stock Exchange






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






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






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






7. 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






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






9. 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






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






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






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






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






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






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






16. A market characterized by rising prices for securities






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






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






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






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






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






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






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






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






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






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






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






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






29. Buying a stock at a price you set






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






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






32. American Stock Exchange






33. New York Stock Exchange






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. When issuer sells the entire issue to the underwriters






36. An increase in price or value of a stock






37. Price/earnings






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






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






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






41. A market characterized by rising prices for securities






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






43. Equity financing for nonpublic companies






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






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






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






47. Also known as secondary and follow-on offering






48. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






49. 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






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