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. Amount that you invest in securities






2. Buying a stock at a price you set






3. Securities initially offered only to existing owners






4. New York Stock Exchange






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






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






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






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






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






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






11. 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.






12. An increase in price or value of a stock






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






14. 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






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






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






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






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






19. American Stock Exchange






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






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






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






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






24. Securities initially offered only to existing owners






25. Price/earnings






26. 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






27. 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






28. New York Stock Exchange






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






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






31. Financing for new - often high-risk ventures






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






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






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






35. When issuer sells the entire issue to the underwriters






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






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






38. When issuer sells the entire issue to the underwriters






39. A market characterized by rising prices for securities






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






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






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






43. 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)






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






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






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






47. American Stock Exchange






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






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






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