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






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






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






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






5. American Stock Exchange






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






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






8. An increase in price or value of a stock






9. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






11. Securities initially offered only to existing owners






12. An increase in price or value of a stock






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






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






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






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






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






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






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






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






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






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






23. When issuer sells the entire issue to the underwriters






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






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






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






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






28. Financing for new - often high-risk ventures






29. 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






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






31. A market characterized by rising prices for securities






32. 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






33. When issuer sells the entire issue to the underwriters






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






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






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






37. Also known as secondary and follow-on offering






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






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






40. Buying a stock at a price you set






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






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






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






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






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






46. Price/earnings






47. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






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






50. A market characterized by falling prices for securities