SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
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. 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
Net change
Market order
NYSE Hybrid Market
OTC [Over-the-counter]
2. An increase in price or value of a stock
AMEX
Stock broker
Appreciation
bid v. ask
3. A person who buys or sells stocks for another in exchange for a commission
Blue chip stock
over-the counter market
Common stock
Stock broker
4. Stock whose holders are guaranteed priority in the payment of dividends but whose holders have no voting rights
dealer v. broker
NYSE Hybrid Market
Preferred Stock
Common stock
5. NASDAQ was opened to his which is a website that allowed investors to trade directly with one another;
Appreciation
electronic communications networks (ECNs)
three ways of the secondary market
NYSE Hybrid Market
6. A preliminary prospectus among investor to generate interest in the stock offering
Market order
Penny stock
NYSE
red herring
7. A certificate documenting the shareholder's ownership in the corporation. There is no guarantee of making money with a stock.
Stock
best efforts underwriting
general cash offer
NYSE v. NASDAQ
8. New York Stock Exchange
Dow Jones idustrial average
stop-sell v. stop-buy
Stop order
NYSE
9. Buys & sells for clients at a reduced commission. They offer little or no investment advice.
over-the counter market
Market order
Discount broker
electronic communications networks (ECNs)
10. Stop order is where the customer specifies a stop price in which once it's reached - it is converted into a market order
Portfolio
Discount broker
limit v. stop orders
three ways of the secondary market
11. New York Stock Exchange
over-the counter market
NYSE Hybrid Market
NYSE
red herring
12. 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
Stop order
over-the counter market
dealer v. broker
third market v. fourth market
13. A measure of stock market prices based on thirty leading companies of the new york stock exchange and nasdaq
Dow Jones idustrial average
Stock
seasoned equity offering (SEO)
Stock split
14. A market characterized by rising prices for securities
Stock split
dealer v. broker
NASDAQ
Bull market
15. Also known as uniform price auction b/c all successful bidders pay the same price
stop-sell v. stop-buy
dutch auction underwriting
Preferred Stock
Portfolio
16. A computerized data system to provide brokers with price quotations for securities traded over the counter
NASDAQ
Dividend
dutch auction underwriting
NYSE minimum requirements
17. A corporation's first offer to sell stock to the public
Stock split
Potential loss
IPO [Initial Public Offering]
NYSE minimum requirements
18. A stock selling for less that $1/share; usually high risk
private equity
Penny stock
Dividend
AMEX
19. A stock selling for less that $1/share; usually high risk
NYSE
AMEX
bid v. ask
Penny stock
20. Another name for IPO - b/c shares are not available to the public before the IPO
NYSE
stop-limit order
unseasoned equity offering
IPO [Initial Public Offering]
21. Securities initially offered only to existing owners
NYSE Hybrid Market
Portfolio
Bond
rights offer
22. Fund that pools the savings of many individuals and invests this money in a variety of stocks - bonds - and other financial assets
general cash offer
Potential loss
Bear market
Mutual fund
23. Stock from nationally recognized companies which dominate the industry often having annual revenue of one billion or more
Blue chip stock
over-the counter market
limit v. stop orders
Net change
24. A market characterized by rising prices for securities
Limit order
Bull market
stop-sell v. stop-buy
No-load
25. 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
P / E
Net change
NYSE Hybrid Market
Stop order
26. A certificate of debt (usually interest-bearing or discounted) that is issued by a government or corporation in order to raise money
Bond
best efforts underwriting
three ways of the secondary market
NASDAQ
27. The most basic form of ownership - including voting rights on major issues - in a company
firm commitment underwriting
red herring
Common stock
No-load
28. Also known as secondary and follow-on offering
bid v. ask
electronic communications networks (ECNs)
bid v. ask
seasoned equity offering (SEO)
29. An order to a broker to sell or buy stocks or commodities at the prevailing market price
electronic communications networks (ECNs)
Market order
bid v. ask
best efforts underwriting
30. Also known as secondary and follow-on offering
seasoned equity offering (SEO)
best efforts underwriting
P / E
firm commitment underwriting
31. Financing for new - often high-risk ventures
Stock split
NYSE v. NASDAQ
Portfolio
venture capital VC
32. A group of underwriters formed to share the risk and to help sell an issue
Dividend
No-load
syndicate
seasoned equity offering (SEO)
33. American Stock Exchange
AMEX
electronic communications networks (ECNs)
Penny stock
Potential loss
34. That part of the earnings of a corporation that is distributed to its shareholders
stop-sell v. stop-buy
Dividend
Stock split
stop-limit order
35. Securities market where dealers buy and sell securities for their own inventories; NASDAQ is one example
Preferred Stock
over-the counter market
firm commitment underwriting
three ways of the secondary market
36. Buying a stock at a price you set
Limit order
red herring
Penny stock
venture capital VC
37. Stock whose holders are guaranteed priority in the payment of dividends but whose holders have no voting rights
rights offer
Preferred Stock
Stock broker
Net change
38. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory
best efforts underwriting
Common stock
P / E
three ways of the secondary market
39. NASDAQ was opened to his which is a website that allowed investors to trade directly with one another;
seasoned equity offering (SEO)
NYSE
electronic communications networks (ECNs)
P / E
40. Fund that pools the savings of many individuals and invests this money in a variety of stocks - bonds - and other financial assets
Market order
Mutual fund
dealer v. broker
NYSE minimum requirements
41. NASDAQ is a computer network with no physical location and has a multiple market maker system rather than a specialist system
firm commitment underwriting
NYSE v. NASDAQ
Appreciation
Bond
42. 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
stop-sell v. stop-buy
Net change
Bull market
firm commitment underwriting
43. 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)
Stock split
over-the counter market
Portfolio
NYSE
44. An order to a broker to sell (buy) when the price of a security falls (rises) to a designated level
Stop order
Stock broker
NYSE v. NASDAQ
Potential loss
45. Once the stock price reaches the preset stop price the order is converted ito a limit order
Bond
dealer v. broker
stop-limit order
Stock split
46. Securities initially offered only to existing owners
Discount broker
Mutual fund
dealer v. broker
rights offer
47. American Stock Exchange
venture capital VC
IPO [Initial Public Offering]
AMEX
Market order
48. 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
Dividend
stop-sell v. stop-buy
limit v. stop orders
Common stock
49. Underwriter doesn't guarantee any particular amount of money to the issuer
NASDAQ
Fund manager
Ticker
best efforts underwriting
50. A certificate documenting the shareholder's ownership in the corporation. There is no guarantee of making money with a stock.
Stock split
Stock
Market order
three ways of the secondary market