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






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






3. 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)






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






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






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






7. The person(s) resposible for implementing a fund's investing strategy and managing its portfolio trading activities






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






9. An increase in price or value of a stock






10. Amount that you invest in securities






11. A market characterized by rising prices for securities






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






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






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






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






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






17. 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.






18. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






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






21. When issuer sells the entire issue to the underwriters






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






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






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






25. American Stock Exchange






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






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






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






29. Amount that you invest in securities






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






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






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






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






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






35. Equity financing for nonpublic companies






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






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






38. When issuer sells the entire issue to the underwriters






39. 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






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






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






42. Price/earnings






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






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






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






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






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






48. Price/earnings






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






50. Securities initially offered only to existing owners