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






2. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






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






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






6. 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






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






8. An increase in price or value of a stock






9. A market characterized by falling prices for securities






10. Also known as secondary and follow-on offering






11. Price/earnings






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






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






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






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






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






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






18. Securities initially offered only to existing owners






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






20. Amount that you invest in securities






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






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






23. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






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






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






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






28. 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






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






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






31. American Stock Exchange






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






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






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






35. Price/earnings






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






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






38. When issuer sells the entire issue to the underwriters






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






40. Financing for new - often high-risk ventures






41. A market characterized by rising prices for securities






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






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






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






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






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






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






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






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