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






2. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






4. Equity financing for nonpublic companies






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






6. Buying a stock at a price you set






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






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






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






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






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






12. 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.






13. 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






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






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






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






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






18. When issuer sells the entire issue to the underwriters






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






20. 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






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






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






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






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






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






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






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






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






29. A market characterized by rising prices for securities






30. A market characterized by rising prices for securities






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






32. American Stock Exchange






33. Price/earnings






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






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






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






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






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






39. 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






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






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






42. Price/earnings






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






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






45. 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)






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






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






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






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






50. Financing for new - often high-risk ventures