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






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






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






4. American Stock Exchange






5. A market characterized by rising prices for securities






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






7. Equity financing for nonpublic companies






8. 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






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






10. A market characterized by rising prices for securities






11. When issuer sells the entire issue to the underwriters






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






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






14. 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)






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






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






17. A market characterized by falling prices for securities






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






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






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






21. 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






22. 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






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






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






25. Financing for new - often high-risk ventures






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






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






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






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






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






31. Also known as secondary and follow-on offering






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






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






34. New York Stock Exchange






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






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






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






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






39. A market characterized by falling prices for securities






40. Securities initially offered only to existing owners






41. 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






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






43. New York Stock Exchange






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






45. 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.






46. Price/earnings






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






48. American Stock Exchange






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






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