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






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






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






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






5. Also known as secondary and follow-on offering






6. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






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






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






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






11. Equity financing for nonpublic companies






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






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






14. 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






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






16. A market characterized by falling prices for securities






17. American Stock Exchange






18. 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)






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






20. New York Stock Exchange






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






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






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






24. 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.






25. A market characterized by falling prices for securities






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






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






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






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






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






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






32. 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






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






34. Equity financing for nonpublic companies






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






36. Price/earnings






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






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






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






40. An increase in price or value of a stock






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






42. American Stock Exchange






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






44. Financing for new - often high-risk ventures






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






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






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






48. New York Stock Exchange






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






50. Also known as secondary and follow-on offering