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






2. 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






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






4. Securities initially offered only to existing owners






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






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






7. Financing for new - often high-risk ventures






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






9. New York Stock Exchange






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






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






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






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






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






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






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






17. Buying a stock at a price you set






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






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






20. American Stock Exchange






21. New York Stock Exchange






22. Amount that you invest in securities






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






24. American Stock Exchange






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






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






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






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






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






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






31. Also known as secondary and follow-on offering






32. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






33. A market characterized by falling prices for securities






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






35. An order to a broker to sell (buy) when the price of a security falls (rises) to a designated level






36. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






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






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






40. 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)






41. A market characterized by rising prices for securities






42. A market characterized by rising prices for securities






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






44. A corporation's first offer to sell stock to the public






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






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






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






48. 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.






49. A market characterized by falling prices for securities






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