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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. Also known as uniform price auction b/c all successful bidders pay the same price
NYSE
over-the counter market
Discount broker
dutch auction underwriting
2. Securities market where dealers buy and sell securities for their own inventories; NASDAQ is one example
over-the counter market
Securities
stop-sell v. stop-buy
Potential loss
3. A certificate of debt (usually interest-bearing or discounted) that is issued by a government or corporation in order to raise money
three ways of the secondary market
Bond
Ticker
Mutual fund
4. Mutual fund in which shares are sold without a commission or sales charge
NYSE v. NASDAQ
Bear market
Stop order
No-load
5. Buys & sells for clients at a reduced commission. They offer little or no investment advice.
third market v. fourth market
over-the counter market
Discount broker
electronic communications networks (ECNs)
6. An order to a broker to sell (buy) when the price of a security falls (rises) to a designated level
Stop order
Portfolio
seasoned equity offering (SEO)
third market v. fourth market
7. A person who buys or sells stocks for another in exchange for a commission
bid v. ask
firm commitment underwriting
Stock broker
seasoned equity offering (SEO)
8. A list of the financial assets held by an individual or a bank or other financial institution
three ways of the secondary market
dealer v. broker
Potential loss
Portfolio
9. Fund that pools the savings of many individuals and invests this money in a variety of stocks - bonds - and other financial assets
Mutual fund
NYSE minimum requirements
stop-sell v. stop-buy
Market order
10. Also known as uniform price auction b/c all successful bidders pay the same price
Fund manager
Dow Jones idustrial average
Net change
dutch auction underwriting
11. 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)
Bond
Penny stock
Stock broker
Stock split
12. American Stock Exchange
NYSE minimum requirements
AMEX
red herring
rights offer
13. A person who buys or sells stocks for another in exchange for a commission
Common stock
Stock
Stock broker
syndicate
14. An order to a broker to sell (buy) when the price of a security falls (rises) to a designated level
firm commitment underwriting
No-load
Common stock
Stop order
15. 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)
Stock split
Limit order
seasoned equity offering (SEO)
Bear market
16. A stock selling for less that $1/share; usually high risk
Penny stock
Appreciation
over-the counter market
Ticker
17. Also known as secondary and follow-on offering
seasoned equity offering (SEO)
Stock broker
Limit order
dealer v. broker
18. Equity financing for nonpublic companies
unseasoned equity offering
dealer v. broker
private equity
AMEX
19. When issuer sells the entire issue to the underwriters
IPO [Initial Public Offering]
over-the counter market
No-load
firm commitment underwriting
20. A corporation's first offer to sell stock to the public
OTC [Over-the-counter]
Portfolio
IPO [Initial Public Offering]
Stock broker
21. Difference between closing price of previous day and current day
firm commitment underwriting
Net change
over-the counter market
Penny stock
22. All of the investments - including stocks - bonds - mutual funds - options - and commodities - that are traded
Securities
stop-limit order
NYSE
bid v. ask
23. Buys & sells for clients at a reduced commission. They offer little or no investment advice.
Discount broker
Potential loss
Stock split
best efforts underwriting
24. Bid- price dealer is willing to pay - ask- price dealer will sell at
Bond
bid v. ask
Stock
stop-limit order
25. That part of the earnings of a corporation that is distributed to its shareholders
syndicate
Securities
Dividend
NYSE Hybrid Market
26. Stop order is where the customer specifies a stop price in which once it's reached - it is converted into a market order
stop-sell v. stop-buy
limit v. stop orders
Stock
Stock split
27. The system that prints or dsplays last sale prices and the volume of securities transactions on exchanges on a moving tape
over-the counter market
seasoned equity offering (SEO)
Limit order
Ticker
28. A computerized data system to provide brokers with price quotations for securities traded over the counter
Securities
Bull market
NASDAQ
NYSE minimum requirements
29. Once the stock price reaches the preset stop price the order is converted ito a limit order
No-load
Bear market
stop-limit order
Penny stock
30. 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.
Ticker
stop-sell v. stop-buy
best efforts underwriting
NYSE minimum requirements
31. The most basic form of ownership - including voting rights on major issues - in a company
Penny stock
Common stock
Bond
over-the counter market
32. The market in which securities that are not listed on exchanges are traded
NASDAQ
Penny stock
Bear market
OTC [Over-the-counter]
33. Another name for IPO - b/c shares are not available to the public before the IPO
Dow Jones idustrial average
firm commitment underwriting
unseasoned equity offering
Bond
34. Stock whose holders are guaranteed priority in the payment of dividends but whose holders have no voting rights
No-load
Preferred Stock
Blue chip stock
Stock
35. A market characterized by falling prices for securities
Bear market
stop-sell v. stop-buy
general cash offer
best efforts underwriting
36. A certificate of debt (usually interest-bearing or discounted) that is issued by a government or corporation in order to raise money
NYSE Hybrid Market
limit v. stop orders
Bull market
Bond
37. A preliminary prospectus among investor to generate interest in the stock offering
Dividend
Mutual fund
electronic communications networks (ECNs)
red herring
38. Fund that pools the savings of many individuals and invests this money in a variety of stocks - bonds - and other financial assets
NYSE v. NASDAQ
OTC [Over-the-counter]
Dividend
Mutual fund
39. Financing for new - often high-risk ventures
Fund manager
Stock broker
NYSE minimum requirements
venture capital VC
40. A list of the financial assets held by an individual or a bank or other financial institution
Portfolio
Stock
firm commitment underwriting
seasoned equity offering (SEO)
41. Dealer- has inventory like car dealer - broker- brings buyers and sellers together (like real estate broker)
dealer v. broker
limit v. stop orders
seasoned equity offering (SEO)
Market order
42. The system that prints or dsplays last sale prices and the volume of securities transactions on exchanges on a moving tape
NYSE v. NASDAQ
Common stock
Portfolio
Ticker
43. Detailed acct of company's financial position - its operations - and its investment plans for the future which is submitted to SEC for approval
Net change
prospectus
over-the counter market
Limit order
44. A group of underwriters formed to share the risk and to help sell an issue
over-the counter market
syndicate
prospectus
Market order
45. Securities initially offered only to existing owners
NYSE
Mutual fund
venture capital VC
rights offer
46. All of the investments - including stocks - bonds - mutual funds - options - and commodities - that are traded
Securities
P / E
over-the counter market
third market v. fourth market
47. A certificate documenting the shareholder's ownership in the corporation. There is no guarantee of making money with a stock.
Stock
syndicate
Penny stock
Preferred Stock
48. Stock from nationally recognized companies which dominate the industry often having annual revenue of one billion or more
Bull market
Securities
Blue chip stock
general cash offer
49. Securities initially offered only to existing owners
venture capital VC
Stock
rights offer
NYSE
50. 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.
NYSE Hybrid Market
Portfolio
NYSE minimum requirements
firm commitment underwriting