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Test your basic knowledge |
Stock Market Basics
Start Test
Study First
Subjects
:
industries
,
business-skills
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. The most basic form of ownership - including voting rights on major issues - in a company
Common stock
stop-sell v. stop-buy
dealer v. broker
AMEX
2. Dealer- has inventory like car dealer - broker- brings buyers and sellers together (like real estate broker)
NYSE Hybrid Market
best efforts underwriting
over-the counter market
dealer v. broker
3. A person who buys or sells stocks for another in exchange for a commission
seasoned equity offering (SEO)
Stock broker
Stop order
Penny stock
4. Detailed acct of company's financial position - its operations - and its investment plans for the future which is submitted to SEC for approval
No-load
Ticker
Bear market
prospectus
5. Financing for new - often high-risk ventures
venture capital VC
Fund manager
NYSE minimum requirements
prospectus
6. 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
Stock broker
Discount broker
third market v. fourth market
AMEX
7. The system that prints or dsplays last sale prices and the volume of securities transactions on exchanges on a moving tape
Ticker
Market order
Discount broker
dealer v. broker
8. A market characterized by falling prices for securities
Market order
electronic communications networks (ECNs)
three ways of the secondary market
Bear market
9. A group of underwriters formed to share the risk and to help sell an issue
Bond
IPO [Initial Public Offering]
No-load
syndicate
10. 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
Appreciation
NYSE Hybrid Market
third market v. fourth market
Portfolio
11. NASDAQ was opened to his which is a website that allowed investors to trade directly with one another;
Limit order
best efforts underwriting
electronic communications networks (ECNs)
OTC [Over-the-counter]
12. NASDAQ was opened to his which is a website that allowed investors to trade directly with one another;
electronic communications networks (ECNs)
stop-limit order
three ways of the secondary market
general cash offer
13. Securities market where dealers buy and sell securities for their own inventories; NASDAQ is one example
Preferred Stock
electronic communications networks (ECNs)
OTC [Over-the-counter]
over-the counter market
14. NASDAQ is a computer network with no physical location and has a multiple market maker system rather than a specialist system
Common stock
NYSE v. NASDAQ
NYSE
P / E
15. A list of the financial assets held by an individual or a bank or other financial institution
Bear market
Portfolio
third market v. fourth market
syndicate
16. Another name for IPO - b/c shares are not available to the public before the IPO
venture capital VC
Stock
unseasoned equity offering
dealer v. broker
17. Price/earnings
best efforts underwriting
P / E
NYSE
Stop order
18. Also known as secondary and follow-on offering
Dividend
seasoned equity offering (SEO)
NYSE Hybrid Market
Blue chip stock
19. The person(s) resposible for implementing a fund's investing strategy and managing its portfolio trading activities
Market order
Fund manager
three ways of the secondary market
Potential loss
20. 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
third market v. fourth market
best efforts underwriting
over-the counter market
Preferred Stock
21. A corporation's first offer to sell stock to the public
venture capital VC
Preferred Stock
Mutual fund
IPO [Initial Public Offering]
22. Bid- price dealer is willing to pay - ask- price dealer will sell at
syndicate
Market order
Bull market
bid v. ask
23. 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)
NYSE
Stock split
electronic communications networks (ECNs)
Blue chip stock
24. Amount that you invest in securities
AMEX
Potential loss
stop-sell v. stop-buy
red herring
25. A certificate of debt (usually interest-bearing or discounted) that is issued by a government or corporation in order to raise money
NYSE Hybrid Market
Bond
Securities
firm commitment underwriting
26. Mutual fund in which shares are sold without a commission or sales charge
best efforts underwriting
three ways of the secondary market
limit v. stop orders
No-load
27. A stock selling for less that $1/share; usually high risk
electronic communications networks (ECNs)
Penny stock
three ways of the secondary market
Securities
28. Buys & sells for clients at a reduced commission. They offer little or no investment advice.
Discount broker
syndicate
No-load
Common stock
29. Once the stock price reaches the preset stop price the order is converted ito a limit order
private equity
Ticker
stop-limit order
Potential loss
30. A market characterized by rising prices for securities
OTC [Over-the-counter]
NASDAQ
Bull market
Market order
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
Potential loss
stop-sell v. stop-buy
NASDAQ
Blue chip stock
32. An order to a broker to sell or buy stocks or commodities at the prevailing market price
Stop order
NASDAQ
IPO [Initial Public Offering]
Market order
33. 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
NYSE Hybrid Market
No-load
Bond
OTC [Over-the-counter]
34. A certificate documenting the shareholder's ownership in the corporation. There is no guarantee of making money with a stock.
seasoned equity offering (SEO)
Penny stock
red herring
Stock
35. A computerized data system to provide brokers with price quotations for securities traded over the counter
limit v. stop orders
NASDAQ
Stock
Penny stock
36. That part of the earnings of a corporation that is distributed to its shareholders
three ways of the secondary market
Dividend
Market order
stop-sell v. stop-buy
37. Underwriter doesn't guarantee any particular amount of money to the issuer
P / E
best efforts underwriting
general cash offer
limit v. stop orders
38. The person(s) resposible for implementing a fund's investing strategy and managing its portfolio trading activities
Fund manager
Stop order
Common stock
No-load
39. Difference between closing price of previous day and current day
Stock broker
Bear market
Net change
rights offer
40. Stop order is where the customer specifies a stop price in which once it's reached - it is converted into a market order
stop-limit order
electronic communications networks (ECNs)
limit v. stop orders
bid v. ask
41. Underwriter doesn't guarantee any particular amount of money to the issuer
stop-limit order
Appreciation
best efforts underwriting
NASDAQ
42. Stock from nationally recognized companies which dominate the industry often having annual revenue of one billion or more
prospectus
Penny stock
Blue chip stock
Mutual fund
43. Buys & sells for clients at a reduced commission. They offer little or no investment advice.
rights offer
Bond
stop-limit order
Discount broker
44. All of the investments - including stocks - bonds - mutual funds - options - and commodities - that are traded
NYSE v. NASDAQ
Fund manager
Securities
electronic communications networks (ECNs)
45. Securities or SEO offered to the public on a first-come first serve basis
No-load
Blue chip stock
Preferred Stock
general cash offer
46. An increase in price or value of a stock
Appreciation
Dow Jones idustrial average
AMEX
Stop order
47. Stock whose holders are guaranteed priority in the payment of dividends but whose holders have no voting rights
Stock
Preferred Stock
third market v. fourth market
over-the counter market
48. A stock selling for less that $1/share; usually high risk
Dow Jones idustrial average
Net change
venture capital VC
Penny stock
49. An order to a broker to sell (buy) when the price of a security falls (rises) to a designated level
Dividend
dutch auction underwriting
Stop order
Stock split
50. An order to a broker to sell or buy stocks or commodities at the prevailing market price
Market order
IPO [Initial Public Offering]
OTC [Over-the-counter]
NASDAQ