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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. An increase in price or value of a stock






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






3. A market characterized by rising prices for securities






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






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






6. A market characterized by falling prices for securities






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






8. 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






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






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






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






12. Buying a stock at a price you set






13. Also known as secondary and follow-on offering






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






15. American Stock Exchange






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






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






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






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






20. 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






21. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






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






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






25. 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






26. 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






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






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






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






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






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






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






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






34. 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.






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






36. 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






37. Financing for new - often high-risk ventures






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






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






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






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






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






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






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






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






46. New York Stock Exchange






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






48. Equity financing for nonpublic companies






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






50. Buying a stock at a price you set