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. Amount that you invest in securities






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






3. 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






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






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






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






7. New York Stock Exchange






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






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






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






11. When issuer sells the entire issue to the underwriters






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






13. An increase in price or value of a stock






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






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






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






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






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






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






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






21. Amount that you invest in securities






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






23. Securities initially offered only to existing owners






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






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






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






27. Buying a stock at a price you set






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.






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






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






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






32. Securities initially offered only to existing owners






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






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






35. American Stock Exchange






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






37. 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






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






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






40. An increase in price or value of a stock






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






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






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






44. Also known as secondary and follow-on offering






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






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






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






48. 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.






49. Price/earnings






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