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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. American Stock Exchange






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






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






4. Also known as secondary and follow-on offering






5. 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.






6. New York Stock Exchange






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






8. 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






9. Amount that you invest in securities






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






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






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






13. Price/earnings






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






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)






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






17. 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)






18. 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






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






20. An increase in price or value of a stock






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






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






23. American Stock Exchange






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






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






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






27. A market characterized by rising prices for securities






28. A market characterized by falling prices for securities






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






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. 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.






32. Financing for new - often high-risk ventures






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






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






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






36. An increase in price or value of a stock






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






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






39. Securities initially offered only to existing owners






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






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






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






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






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






45. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






46. Also known as secondary and follow-on offering






47. New York Stock Exchange






48. Buying a stock at a price you set






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






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