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






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






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






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






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






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






7. Amount that you invest in securities






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






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






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






11. Buying a stock at a price you set






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






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






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






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






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






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






18. 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






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






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






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






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






23. When issuer sells the entire issue to the underwriters






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






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






26. A market characterized by rising prices for securities






27. Equity financing for nonpublic companies






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






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






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






31. Financing for new - often high-risk ventures






32. New York Stock Exchange






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






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






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






36. Amount that you invest in securities






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






38. Also known as secondary and follow-on offering






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






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






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






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






43. Securities initially offered only to existing owners






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






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






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






47. 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






48. American Stock Exchange






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






50. 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.