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. Financing for new - often high-risk ventures






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






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






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






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






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






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






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






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






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






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






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






13. Equity financing for nonpublic companies






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






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






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






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






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






19. 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






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






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






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






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






24. 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)






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






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






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






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. Financing for new - often high-risk ventures






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






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






32. A market characterized by rising prices for securities






33. Price/earnings






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






35. Equity financing for nonpublic companies






36. An increase in price or value of a stock






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






38. When issuer sells the entire issue to the underwriters






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






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






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






42. 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)






43. Price/earnings






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






45. 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






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






47. 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.






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






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






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