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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. New York Stock Exchange






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






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






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






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






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






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






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






9. 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)






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






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






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






13. New York Stock Exchange






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






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






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






17. When issuer sells the entire issue to the underwriters






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






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






20. 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.






21. A market characterized by rising prices for securities






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






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






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






25. A market characterized by rising prices for securities






26. Buying a stock at a price you set






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






28. Financing for new - often high-risk ventures






29. Buying a stock at a price you set






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






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






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






33. 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






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






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






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






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






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






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






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






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






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






43. Also known as secondary and follow-on offering






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






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






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






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






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






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






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