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Test your basic knowledge |
Stock Market Basics
Start Test
Study First
Subjects
:
industries
,
business-skills
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. An order to a broker to sell (buy) when the price of a security falls (rises) to a designated level
syndicate
third market v. fourth market
red herring
Stop order
2. A group of underwriters formed to share the risk and to help sell an issue
NYSE v. NASDAQ
syndicate
NASDAQ
Penny stock
3. Securities market where dealers buy and sell securities for their own inventories; NASDAQ is one example
NYSE v. NASDAQ
over-the counter market
Penny stock
bid v. ask
4. Buys & sells for clients at a reduced commission. They offer little or no investment advice.
seasoned equity offering (SEO)
Blue chip stock
Discount broker
best efforts underwriting
5. That part of the earnings of a corporation that is distributed to its shareholders
Dividend
Preferred Stock
Securities
Stock split
6. Also known as secondary and follow-on offering
seasoned equity offering (SEO)
Net change
stop-limit order
Stock split
7. The market in which securities that are not listed on exchanges are traded
Net change
OTC [Over-the-counter]
Bond
stop-limit order
8. A certificate documenting the shareholder's ownership in the corporation. There is no guarantee of making money with a stock.
Portfolio
Stock split
Bull market
Stock
9. The most basic form of ownership - including voting rights on major issues - in a company
Common stock
prospectus
Preferred Stock
AMEX
10. Fund that pools the savings of many individuals and invests this money in a variety of stocks - bonds - and other financial assets
Mutual fund
Common stock
seasoned equity offering (SEO)
prospectus
11. Financing for new - often high-risk ventures
dealer v. broker
venture capital VC
stop-sell v. stop-buy
NYSE v. NASDAQ
12. The person(s) resposible for implementing a fund's investing strategy and managing its portfolio trading activities
Stock split
Common stock
Fund manager
Stop order
13. An order to a broker to sell or buy stocks or commodities at the prevailing market price
NYSE
Market order
Potential loss
Mutual fund
14. All of the investments - including stocks - bonds - mutual funds - options - and commodities - that are traded
Stock split
NYSE Hybrid Market
Blue chip stock
Securities
15. The system that prints or dsplays last sale prices and the volume of securities transactions on exchanges on a moving tape
Dow Jones idustrial average
Ticker
Stock split
stop-limit order
16. A corporation's first offer to sell stock to the public
rights offer
NYSE
Dow Jones idustrial average
IPO [Initial Public Offering]
17. When issuer sells the entire issue to the underwriters
Securities
firm commitment underwriting
Dividend
Net change
18. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory
dealer v. broker
three ways of the secondary market
Stock broker
Stock split
19. Underwriter doesn't guarantee any particular amount of money to the issuer
Limit order
three ways of the secondary market
best efforts underwriting
Bear market
20. Underwriter doesn't guarantee any particular amount of money to the issuer
Market order
Ticker
best efforts underwriting
P / E
21. A certificate of debt (usually interest-bearing or discounted) that is issued by a government or corporation in order to raise money
Preferred Stock
over-the counter market
Bond
best efforts underwriting
22. Stock from nationally recognized companies which dominate the industry often having annual revenue of one billion or more
NASDAQ
Blue chip stock
venture capital VC
Limit order
23. Securities initially offered only to existing owners
prospectus
firm commitment underwriting
Limit order
rights offer
24. Equity financing for nonpublic companies
private equity
Bull market
stop-sell v. stop-buy
three ways of the secondary market
25. Once the stock price reaches the preset stop price the order is converted ito a limit order
stop-limit order
AMEX
three ways of the secondary market
NYSE
26. A market characterized by rising prices for securities
Bull market
Bond
Dividend
Bond
27. NASDAQ is a computer network with no physical location and has a multiple market maker system rather than a specialist system
NYSE v. NASDAQ
dealer v. broker
electronic communications networks (ECNs)
stop-sell v. stop-buy
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.
NASDAQ
NYSE v. NASDAQ
seasoned equity offering (SEO)
NYSE minimum requirements
29. That part of the earnings of a corporation that is distributed to its shareholders
Market order
private equity
Dividend
private equity
30. Securities market where dealers buy and sell securities for their own inventories; NASDAQ is one example
red herring
over-the counter market
NASDAQ
three ways of the secondary market
31. Mutual fund in which shares are sold without a commission or sales charge
stop-sell v. stop-buy
venture capital VC
No-load
Bond
32. Buying a stock at a price you set
Limit order
Bear market
three ways of the secondary market
Potential loss
33. Stock whose holders are guaranteed priority in the payment of dividends but whose holders have no voting rights
Preferred Stock
dealer v. broker
Market order
seasoned equity offering (SEO)
34. The most basic form of ownership - including voting rights on major issues - in a company
Limit order
over-the counter market
Common stock
Mutual fund
35. Buying a stock at a price you set
dutch auction underwriting
Limit order
seasoned equity offering (SEO)
bid v. ask
36. A list of the financial assets held by an individual or a bank or other financial institution
over-the counter market
Blue chip stock
syndicate
Portfolio
37. Stop order is where the customer specifies a stop price in which once it's reached - it is converted into a market order
stop-limit order
Portfolio
limit v. stop orders
electronic communications networks (ECNs)
38. A person who buys or sells stocks for another in exchange for a commission
IPO [Initial Public Offering]
Securities
Stock broker
third market v. fourth market
39. A computerized data system to provide brokers with price quotations for securities traded over the counter
NASDAQ
prospectus
stop-limit order
No-load
40. Detailed acct of company's financial position - its operations - and its investment plans for the future which is submitted to SEC for approval
prospectus
third market v. fourth market
Appreciation
Stock
41. 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
Preferred Stock
Net change
general cash offer
stop-sell v. stop-buy
42. A market characterized by rising prices for securities
third market v. fourth market
Bull market
Stop order
Securities
43. Detailed acct of company's financial position - its operations - and its investment plans for the future which is submitted to SEC for approval
dealer v. broker
limit v. stop orders
prospectus
dutch auction underwriting
44. The person(s) resposible for implementing a fund's investing strategy and managing its portfolio trading activities
seasoned equity offering (SEO)
Dow Jones idustrial average
venture capital VC
Fund manager
45. Also known as uniform price auction b/c all successful bidders pay the same price
Fund manager
dutch auction underwriting
Stock
Appreciation
46. When issuer sells the entire issue to the underwriters
general cash offer
Potential loss
firm commitment underwriting
best efforts underwriting
47. Fund that pools the savings of many individuals and invests this money in a variety of stocks - bonds - and other financial assets
Mutual fund
stop-limit order
IPO [Initial Public Offering]
AMEX
48. 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)
dutch auction underwriting
Stock split
unseasoned equity offering
syndicate
49. Amount that you invest in securities
Limit order
unseasoned equity offering
Mutual fund
Potential loss
50. Equity financing for nonpublic companies
NYSE v. NASDAQ
No-load
general cash offer
private equity