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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. 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.
Blue chip stock
stop-sell v. stop-buy
Stock broker
NYSE minimum requirements
2. Financing for new - often high-risk ventures
seasoned equity offering (SEO)
venture capital VC
Bear market
Penny stock
3. A person who buys or sells stocks for another in exchange for a commission
AMEX
Stock broker
dealer v. broker
best efforts underwriting
4. A stock selling for less that $1/share; usually high risk
Potential loss
Penny stock
NYSE
Common stock
5. A preliminary prospectus among investor to generate interest in the stock offering
rights offer
Market order
Potential loss
red herring
6. A group of underwriters formed to share the risk and to help sell an issue
IPO [Initial Public Offering]
Stop order
Dow Jones idustrial average
syndicate
7. An order to a broker to sell (buy) when the price of a security falls (rises) to a designated level
Appreciation
over-the counter market
Stop order
syndicate
8. That part of the earnings of a corporation that is distributed to its shareholders
dutch auction underwriting
Dividend
Preferred Stock
IPO [Initial Public Offering]
9. A list of the financial assets held by an individual or a bank or other financial institution
Discount broker
third market v. fourth market
Mutual fund
Portfolio
10. All of the investments - including stocks - bonds - mutual funds - options - and commodities - that are traded
Bond
private equity
Securities
NYSE v. NASDAQ
11. A computerized data system to provide brokers with price quotations for securities traded over the counter
Market order
NASDAQ
Penny stock
Securities
12. Mutual fund in which shares are sold without a commission or sales charge
private equity
rights offer
No-load
bid v. ask
13. Bid- price dealer is willing to pay - ask- price dealer will sell at
Fund manager
bid v. ask
third market v. fourth market
private equity
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
Ticker
Discount broker
third market v. fourth market
prospectus
15. An order to a broker to sell (buy) when the price of a security falls (rises) to a designated level
NYSE
firm commitment underwriting
Stop order
bid v. ask
16. The most basic form of ownership - including voting rights on major issues - in a company
dealer v. broker
seasoned equity offering (SEO)
stop-limit order
Common stock
17. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory
Limit order
Potential loss
three ways of the secondary market
seasoned equity offering (SEO)
18. NASDAQ was opened to his which is a website that allowed investors to trade directly with one another;
Potential loss
red herring
electronic communications networks (ECNs)
stop-sell v. stop-buy
19. Also known as secondary and follow-on offering
Stock split
dealer v. broker
Discount broker
seasoned equity offering (SEO)
20. Detailed acct of company's financial position - its operations - and its investment plans for the future which is submitted to SEC for approval
OTC [Over-the-counter]
prospectus
Blue chip stock
Bull market
21. A certificate documenting the shareholder's ownership in the corporation. There is no guarantee of making money with a stock.
Appreciation
rights offer
Stock
Blue chip stock
22. Financing for new - often high-risk ventures
AMEX
P / E
venture capital VC
No-load
23. Dealer- has inventory like car dealer - broker- brings buyers and sellers together (like real estate broker)
syndicate
Preferred Stock
dealer v. broker
rights offer
24. A corporation's first offer to sell stock to the public
Net change
IPO [Initial Public Offering]
stop-limit order
Net change
25. Buying a stock at a price you set
NYSE v. NASDAQ
P / E
Limit order
Dividend
26. A preliminary prospectus among investor to generate interest in the stock offering
AMEX
red herring
firm commitment underwriting
Stock split
27. An order to a broker to sell or buy stocks or commodities at the prevailing market price
Market order
Penny stock
Potential loss
best efforts underwriting
28. Dealer- has inventory like car dealer - broker- brings buyers and sellers together (like real estate broker)
Stop order
dealer v. broker
NYSE v. NASDAQ
electronic communications networks (ECNs)
29. A measure of stock market prices based on thirty leading companies of the new york stock exchange and nasdaq
stop-sell v. stop-buy
unseasoned equity offering
Preferred Stock
Dow Jones idustrial average
30. Securities or SEO offered to the public on a first-come first serve basis
three ways of the secondary market
general cash offer
private equity
NYSE v. NASDAQ
31. Once the stock price reaches the preset stop price the order is converted ito a limit order
over-the counter market
stop-limit order
seasoned equity offering (SEO)
IPO [Initial Public Offering]
32. NASDAQ is a computer network with no physical location and has a multiple market maker system rather than a specialist system
rights offer
third market v. fourth market
NYSE Hybrid Market
NYSE v. NASDAQ
33. A corporation's first offer to sell stock to the public
stop-limit order
Net change
IPO [Initial Public Offering]
Ticker
34. A certificate documenting the shareholder's ownership in the corporation. There is no guarantee of making money with a stock.
electronic communications networks (ECNs)
NYSE Hybrid Market
red herring
Stock
35. A market characterized by falling prices for securities
Appreciation
No-load
Bear market
syndicate
36. The person(s) resposible for implementing a fund's investing strategy and managing its portfolio trading activities
Ticker
NYSE v. NASDAQ
NYSE Hybrid Market
Fund manager
37. Another name for IPO - b/c shares are not available to the public before the IPO
best efforts underwriting
Preferred Stock
unseasoned equity offering
venture capital VC
38. Fund that pools the savings of many individuals and invests this money in a variety of stocks - bonds - and other financial assets
private equity
Stop order
Mutual fund
venture capital VC
39. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory
Bull market
Ticker
venture capital VC
three ways of the secondary market
40. New York Stock Exchange
NASDAQ
NYSE
No-load
limit v. stop orders
41. 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
stop-limit order
NYSE Hybrid Market
bid v. ask
third market v. fourth market
42. NASDAQ is a computer network with no physical location and has a multiple market maker system rather than a specialist system
Preferred Stock
third market v. fourth market
Discount broker
NYSE v. NASDAQ
43. A list of the financial assets held by an individual or a bank or other financial institution
electronic communications networks (ECNs)
AMEX
dealer v. broker
Portfolio
44. Another name for IPO - b/c shares are not available to the public before the IPO
seasoned equity offering (SEO)
Penny stock
NYSE v. NASDAQ
unseasoned equity offering
45. A market characterized by rising prices for securities
Penny stock
Blue chip stock
stop-limit order
Bull market
46. The market in which securities that are not listed on exchanges are traded
Appreciation
Bond
NYSE Hybrid Market
OTC [Over-the-counter]
47. Securities market where dealers buy and sell securities for their own inventories; NASDAQ is one example
over-the counter market
dutch auction underwriting
NYSE
seasoned equity offering (SEO)
48. Once the stock price reaches the preset stop price the order is converted ito a limit order
Common stock
stop-limit order
NYSE Hybrid Market
syndicate
49. Detailed acct of company's financial position - its operations - and its investment plans for the future which is submitted to SEC for approval
stop-sell v. stop-buy
OTC [Over-the-counter]
prospectus
Bond
50. The system that prints or dsplays last sale prices and the volume of securities transactions on exchanges on a moving tape
NYSE
NYSE v. NASDAQ
Portfolio
Ticker