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. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






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






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






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






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






7. 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.






8. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






10. When issuer sells the entire issue to the underwriters






11. When issuer sells the entire issue to the underwriters






12. Buying a stock at a price you set






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






14. American Stock Exchange






15. New York Stock Exchange






16. A market characterized by rising prices for securities






17. 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






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






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






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






21. Mutual fund in which shares are sold without a commission or sales charge






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






23. American Stock Exchange






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






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






26. Securities initially offered only to existing owners






27. Price/earnings






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






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






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






31. 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






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






33. 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.






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






35. A market characterized by falling prices for securities






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






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






38. Price/earnings






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






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






41. Mutual fund in which shares are sold without a commission or sales charge






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






43. Also known as secondary and follow-on offering






44. New York Stock Exchange






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






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






47. 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)






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






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






50. A market characterized by falling prices for securities