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






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






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






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






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






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






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






8. Buying a stock at a price you set






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






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






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






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






13. 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)






14. 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






15. A person who buys or sells stocks for another in exchange for a commission






16. American Stock Exchange






17. Equity financing for nonpublic companies






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






19. A person who buys or sells stocks for another in exchange for a commission






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






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






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






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






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






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. Financing for new - often high-risk ventures






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






29. 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






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






31. Securities initially offered only to existing owners






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






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






34. Financing for new - often high-risk ventures






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






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






37. 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.






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






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






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






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






42. When issuer sells the entire issue to the underwriters






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






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






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






46. American Stock Exchange






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






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






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






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







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