Test your basic knowledge |

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






2. American Stock Exchange






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






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






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






6. Financing for new - often high-risk ventures






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






8. Price/earnings






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






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






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






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






13. A market characterized by falling prices for securities






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






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






16. Also known as secondary and follow-on offering






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






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






19. 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






20. Equity financing for nonpublic companies






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






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






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






24. 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






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






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






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






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






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






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






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






32. Buying a stock at a price you set






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






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






35. New York Stock Exchange






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






37. New York Stock Exchange






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






39. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






40. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






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






43. Price/earnings






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






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






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






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






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






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






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