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. Price/earnings






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






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






4. That part of the earnings of a corporation that is distributed to its shareholders






5. Also known as secondary and follow-on offering






6. New York Stock Exchange






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






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






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






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






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






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






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






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






15. An increase in price or value of a stock






16. New York Stock Exchange






17. 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






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






19. A market characterized by rising prices for securities






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






21. 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






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






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






24. 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






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






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






27. 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.






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






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






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






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






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






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






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






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






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






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






38. When issuer sells the entire issue to the underwriters






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






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






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






42. Equity financing for nonpublic companies






43. Financing for new - often high-risk ventures






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






45. Equity financing for nonpublic companies






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






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






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






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






50. A market characterized by rising prices for securities