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






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






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






4. 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






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






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






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






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






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






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






11. American Stock Exchange






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






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






14. Also known as secondary and follow-on offering






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






16. A market characterized by falling prices for securities






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






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






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






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






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






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






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






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






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






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






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






28. Price/earnings






29. 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






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






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






32. Equity financing for nonpublic companies






33. New York Stock Exchange






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






35. Also known as secondary and follow-on offering






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






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






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






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






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






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






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






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






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






45. Securities initially offered only to existing owners






46. An increase in price or value of a stock






47. 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






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






49. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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.