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. 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.






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






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






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






5. A market characterized by falling prices for securities






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






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






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






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






10. 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






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






12. New York Stock Exchange






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






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






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






16. 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.






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






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






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






20. Buying a stock at a price you set






21. A market characterized by rising prices for securities






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






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






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






25. An increase in price or value of a stock






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






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






28. 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)






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






30. Price/earnings






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






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






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






34. 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






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






36. American Stock Exchange






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






38. An increase in price or value of a stock






39. A market characterized by falling prices for securities






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






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






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






43. Securities initially offered only to existing owners






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






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






46. Securities market where dealers buy and sell securities for their own inventories; NASDAQ is one example






47. American Stock Exchange






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






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






50. Financing for new - often high-risk ventures