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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. Buys & sells for clients at a reduced commission. They offer little or no investment advice.
NYSE Hybrid Market
syndicate
Dividend
Discount broker
2. A list of the financial assets held by an individual or a bank or other financial institution
Bond
Stop order
Portfolio
Securities
3. 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
stop-sell v. stop-buy
IPO [Initial Public Offering]
NYSE minimum requirements
bid v. ask
4. New York Stock Exchange
Securities
Bond
NYSE v. NASDAQ
NYSE
5. The most basic form of ownership - including voting rights on major issues - in a company
NASDAQ
Common stock
venture capital VC
stop-limit order
6. An order to a broker to sell or buy stocks or commodities at the prevailing market price
Bond
Dividend
Stock
Market order
7. A person who buys or sells stocks for another in exchange for a commission
Stock broker
electronic communications networks (ECNs)
dealer v. broker
Penny stock
8. New York Stock Exchange
Mutual fund
NYSE
venture capital VC
Dividend
9. Fund that pools the savings of many individuals and invests this money in a variety of stocks - bonds - and other financial assets
electronic communications networks (ECNs)
Dividend
Mutual fund
Bear market
10. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory
three ways of the secondary market
red herring
firm commitment underwriting
IPO [Initial Public Offering]
11. The system that prints or dsplays last sale prices and the volume of securities transactions on exchanges on a moving tape
private equity
Ticker
NASDAQ
Mutual fund
12. Dealer- has inventory like car dealer - broker- brings buyers and sellers together (like real estate broker)
IPO [Initial Public Offering]
private equity
dealer v. broker
Portfolio
13. Stock from nationally recognized companies which dominate the industry often having annual revenue of one billion or more
prospectus
bid v. ask
Blue chip stock
Appreciation
14. Securities market where dealers buy and sell securities for their own inventories; NASDAQ is one example
NASDAQ
over-the counter market
Portfolio
Mutual fund
15. A person who buys or sells stocks for another in exchange for a commission
Appreciation
Stock split
Stock broker
seasoned equity offering (SEO)
16. Difference between closing price of previous day and current day
Limit order
Discount broker
third market v. fourth market
Net change
17. Underwriter doesn't guarantee any particular amount of money to the issuer
best efforts underwriting
syndicate
unseasoned equity offering
Discount broker
18. An increase in price or value of a stock
Common stock
NYSE v. NASDAQ
Appreciation
private equity
19. When issuer sells the entire issue to the underwriters
stop-sell v. stop-buy
limit v. stop orders
firm commitment underwriting
best efforts underwriting
20. A certificate of debt (usually interest-bearing or discounted) that is issued by a government or corporation in order to raise money
Bond
over-the counter market
prospectus
three ways of the secondary market
21. That part of the earnings of a corporation that is distributed to its shareholders
Dividend
Portfolio
NYSE v. NASDAQ
Securities
22. NASDAQ was opened to his which is a website that allowed investors to trade directly with one another;
Appreciation
firm commitment underwriting
red herring
electronic communications networks (ECNs)
23. A certificate of debt (usually interest-bearing or discounted) that is issued by a government or corporation in order to raise money
limit v. stop orders
Bond
Blue chip stock
three ways of the secondary market
24. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory
third market v. fourth market
NYSE v. NASDAQ
Blue chip stock
three ways of the secondary market
25. American Stock Exchange
Appreciation
No-load
AMEX
Ticker
26. Detailed acct of company's financial position - its operations - and its investment plans for the future which is submitted to SEC for approval
NYSE minimum requirements
prospectus
Bond
Blue chip stock
27. The market in which securities that are not listed on exchanges are traded
OTC [Over-the-counter]
Dividend
Net change
limit v. stop orders
28. The system that prints or dsplays last sale prices and the volume of securities transactions on exchanges on a moving tape
NYSE v. NASDAQ
Penny stock
No-load
Ticker
29. A market characterized by falling prices for securities
Bear market
Stock broker
bid v. ask
Stock broker
30. Bid- price dealer is willing to pay - ask- price dealer will sell at
stop-sell v. stop-buy
OTC [Over-the-counter]
Stock split
bid v. ask
31. Financing for new - often high-risk ventures
venture capital VC
Stock
Bond
Mutual fund
32. Fund that pools the savings of many individuals and invests this money in a variety of stocks - bonds - and other financial assets
limit v. stop orders
NYSE minimum requirements
firm commitment underwriting
Mutual fund
33. Financing for new - often high-risk ventures
three ways of the secondary market
stop-sell v. stop-buy
venture capital VC
Portfolio
34. Also known as secondary and follow-on offering
Mutual fund
seasoned equity offering (SEO)
NYSE
best efforts underwriting
35. 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
seasoned equity offering (SEO)
NASDAQ
NYSE Hybrid Market
bid v. ask
36. All of the investments - including stocks - bonds - mutual funds - options - and commodities - that are traded
NASDAQ
Securities
venture capital VC
Bond
37. A computerized data system to provide brokers with price quotations for securities traded over the counter
Stock split
Appreciation
Common stock
NASDAQ
38. Bid- price dealer is willing to pay - ask- price dealer will sell at
OTC [Over-the-counter]
unseasoned equity offering
bid v. ask
Fund manager
39. Difference between closing price of previous day and current day
general cash offer
Net change
Common stock
No-load
40. Securities market where dealers buy and sell securities for their own inventories; NASDAQ is one example
AMEX
over-the counter market
No-load
Securities
41. Buying a stock at a price you set
Limit order
dutch auction underwriting
NASDAQ
prospectus
42. Also known as secondary and follow-on offering
NYSE Hybrid Market
Market order
unseasoned equity offering
seasoned equity offering (SEO)
43. A list of the financial assets held by an individual or a bank or other financial institution
bid v. ask
stop-sell v. stop-buy
Portfolio
stop-sell v. stop-buy
44. An order to a broker to sell (buy) when the price of a security falls (rises) to a designated level
Common stock
Stop order
OTC [Over-the-counter]
Bear market
45. A market characterized by rising prices for securities
rights offer
Bull market
stop-sell v. stop-buy
Mutual fund
46. Dealer- has inventory like car dealer - broker- brings buyers and sellers together (like real estate broker)
bid v. ask
dealer v. broker
red herring
Stock split
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
Blue chip stock
third market v. fourth market
prospectus
dutch auction underwriting
48. Also known as uniform price auction b/c all successful bidders pay the same price
Fund manager
dutch auction underwriting
Bull market
seasoned equity offering (SEO)
49. NASDAQ was opened to his which is a website that allowed investors to trade directly with one another;
NASDAQ
electronic communications networks (ECNs)
seasoned equity offering (SEO)
stop-limit order
50. Once the stock price reaches the preset stop price the order is converted ito a limit order
stop-limit order
OTC [Over-the-counter]
firm commitment underwriting
rights offer