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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. When issuer sells the entire issue to the underwriters






2. 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






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






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






5. American Stock Exchange






6. Amount that you invest in securities






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






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






9. 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






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






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






12. Financing for new - often high-risk ventures






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






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






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






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






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






19. When issuer sells the entire issue to the underwriters






20. 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






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






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






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






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






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






26. Price/earnings






27. Also known as secondary and follow-on offering






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






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






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






31. 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






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






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






34. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






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






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






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






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






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






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






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






43. Equity financing for nonpublic companies






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






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






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






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






48. American Stock Exchange






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






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