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Test your basic knowledge |
Stock Market Basics
Start Test
Study First
Subjects
:
industries
,
business-skills
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. Securities market where dealers buy and sell securities for their own inventories; NASDAQ is one example
general cash offer
unseasoned equity offering
over-the counter market
limit v. stop orders
2. 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.
Discount broker
No-load
NYSE minimum requirements
Fund manager
3. Stock whose holders are guaranteed priority in the payment of dividends but whose holders have no voting rights
Portfolio
Securities
Preferred Stock
prospectus
4. A market characterized by rising prices for securities
dutch auction underwriting
Preferred Stock
dutch auction underwriting
Bull market
5. Bid- price dealer is willing to pay - ask- price dealer will sell at
Net change
Bond
Fund manager
bid v. ask
6. A certificate documenting the shareholder's ownership in the corporation. There is no guarantee of making money with a stock.
Mutual fund
Stock
Dow Jones idustrial average
bid v. ask
7. The person(s) resposible for implementing a fund's investing strategy and managing its portfolio trading activities
Fund manager
seasoned equity offering (SEO)
Portfolio
electronic communications networks (ECNs)
8. A market characterized by rising prices for securities
NYSE Hybrid Market
Bull market
IPO [Initial Public Offering]
over-the counter market
9. Detailed acct of company's financial position - its operations - and its investment plans for the future which is submitted to SEC for approval
NYSE v. NASDAQ
prospectus
Common stock
syndicate
10. Securities initially offered only to existing owners
NYSE v. NASDAQ
No-load
rights offer
Appreciation
11. Amount that you invest in securities
Potential loss
seasoned equity offering (SEO)
general cash offer
rights offer
12. A list of the financial assets held by an individual or a bank or other financial institution
Portfolio
Stock broker
Penny stock
Bear market
13. Stock whose holders are guaranteed priority in the payment of dividends but whose holders have no voting rights
electronic communications networks (ECNs)
NYSE v. NASDAQ
Preferred Stock
firm commitment underwriting
14. Buying a stock at a price you set
rights offer
Appreciation
Preferred Stock
Limit order
15. 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
Ticker
OTC [Over-the-counter]
stop-sell v. stop-buy
third market v. fourth market
16. New York Stock Exchange
NYSE
limit v. stop orders
Stock split
three ways of the secondary market
17. Amount that you invest in securities
Potential loss
over-the counter market
bid v. ask
Market order
18. Stop order is where the customer specifies a stop price in which once it's reached - it is converted into a market order
Stock split
firm commitment underwriting
P / E
limit v. stop orders
19. Fund that pools the savings of many individuals and invests this money in a variety of stocks - bonds - and other financial assets
Securities
Bull market
Mutual fund
Bull market
20. A computerized data system to provide brokers with price quotations for securities traded over the counter
rights offer
NASDAQ
OTC [Over-the-counter]
NYSE Hybrid Market
21. Once the stock price reaches the preset stop price the order is converted ito a limit order
dealer v. broker
Stop order
Preferred Stock
stop-limit order
22. Equity financing for nonpublic companies
Appreciation
Bull market
NYSE v. NASDAQ
private equity
23. Price/earnings
Common stock
bid v. ask
P / E
limit v. stop orders
24. Once the stock price reaches the preset stop price the order is converted ito a limit order
stop-limit order
Securities
Fund manager
syndicate
25. An increase in price or value of a stock
dealer v. broker
Fund manager
NASDAQ
Appreciation
26. The most basic form of ownership - including voting rights on major issues - in a company
limit v. stop orders
stop-limit order
IPO [Initial Public Offering]
Common stock
27. NASDAQ was opened to his which is a website that allowed investors to trade directly with one another;
electronic communications networks (ECNs)
Stock broker
AMEX
red herring
28. American Stock Exchange
AMEX
Penny stock
Net change
Limit order
29. Price/earnings
Stock split
Dividend
Fund manager
P / E
30. 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
prospectus
stop-sell v. stop-buy
firm commitment underwriting
NYSE
31. The system that prints or dsplays last sale prices and the volume of securities transactions on exchanges on a moving tape
limit v. stop orders
Ticker
dutch auction underwriting
Stock broker
32. 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
NYSE Hybrid Market
rights offer
stop-sell v. stop-buy
Discount broker
33. An order to a broker to sell (buy) when the price of a security falls (rises) to a designated level
rights offer
best efforts underwriting
NYSE
Stop order
34. An order to a broker to sell or buy stocks or commodities at the prevailing market price
unseasoned equity offering
Market order
NYSE v. NASDAQ
Bond
35. 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
third market v. fourth market
NYSE v. NASDAQ
Discount broker
IPO [Initial Public Offering]
36. Dealer- has inventory like car dealer - broker- brings buyers and sellers together (like real estate broker)
dealer v. broker
prospectus
Discount broker
Fund manager
37. Also known as secondary and follow-on offering
seasoned equity offering (SEO)
NYSE
Stop order
Penny stock
38. A group of underwriters formed to share the risk and to help sell an issue
NYSE v. NASDAQ
syndicate
best efforts underwriting
Fund manager
39. Buys & sells for clients at a reduced commission. They offer little or no investment advice.
general cash offer
unseasoned equity offering
stop-limit order
Discount broker
40. When issuer sells the entire issue to the underwriters
three ways of the secondary market
NYSE Hybrid Market
firm commitment underwriting
Discount broker
41. 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
Penny stock
Preferred Stock
NYSE Hybrid Market
Dividend
42. Securities or SEO offered to the public on a first-come first serve basis
general cash offer
limit v. stop orders
Net change
prospectus
43. The most basic form of ownership - including voting rights on major issues - in a company
red herring
private equity
Common stock
firm commitment underwriting
44. A computerized data system to provide brokers with price quotations for securities traded over the counter
NASDAQ
limit v. stop orders
Bull market
No-load
45. Financing for new - often high-risk ventures
electronic communications networks (ECNs)
three ways of the secondary market
Stock split
venture capital VC
46. A preliminary prospectus among investor to generate interest in the stock offering
Preferred Stock
best efforts underwriting
red herring
AMEX
47. Securities market where dealers buy and sell securities for their own inventories; NASDAQ is one example
seasoned equity offering (SEO)
Stock
over-the counter market
stop-sell v. stop-buy
48. Mutual fund in which shares are sold without a commission or sales charge
Portfolio
Dividend
No-load
Securities
49. 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
Stock broker
Discount broker
rights offer
third market v. fourth market
50. Another name for IPO - b/c shares are not available to the public before the IPO
Market order
unseasoned equity offering
Stock split
Stock