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






2. 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






3. 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






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






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






6. New York Stock Exchange






7. Equity financing for nonpublic companies






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






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






10. Buying a stock at a price you set






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






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






13. An increase in price or value of a stock






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






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






16. A market characterized by rising prices for securities






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






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






19. Amount that you invest in securities






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






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






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






23. Also known as secondary and follow-on offering






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






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






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






27. An order to a broker to sell or buy stocks or commodities at the prevailing market price






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






29. Securities initially offered only to existing owners






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






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






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






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






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






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






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






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






38. 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.






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






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






41. Equity financing for nonpublic companies






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






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






44. A market characterized by rising prices for securities






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






46. An increase in price or value of a stock






47. A market characterized by falling prices for securities






48. When issuer sells the entire issue to the underwriters






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






50. American Stock Exchange