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






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






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






4. Securities initially offered only to existing owners






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






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






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






8. Equity financing for nonpublic companies






9. An increase in price or value of a stock






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






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






12. A market characterized by rising prices for securities






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






14. 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






15. A market characterized by falling prices for securities






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






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






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






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






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






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






22. 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






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






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






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






26. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






27. Also known as secondary and follow-on offering






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






29. 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)






30. Financing for new - often high-risk ventures






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






32. Price/earnings






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






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






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






36. A market characterized by falling prices for securities






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






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






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






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






41. Buying a stock at a price you set






42. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






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






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






46. 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)






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






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






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






50. American Stock Exchange