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. When issuer sells the entire issue to the underwriters






2. Price/earnings






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






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






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






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






7. American Stock Exchange






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






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






10. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






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






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






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






15. An increase in price or value of a stock






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






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






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






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






20. 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)






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






22. New York Stock Exchange






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






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






25. Price/earnings






26. Amount that you invest in securities






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






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






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






31. Financing for new - often high-risk ventures






32. Equity financing for nonpublic companies






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






34. Securities initially offered only to existing owners






35. Amount that you invest in securities






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






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






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






39. Securities initially offered only to existing owners






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






41. A market characterized by falling prices for securities






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






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






44. A market characterized by falling prices for securities






45. Also known as secondary and follow-on offering






46. American Stock Exchange






47. 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)






48. 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






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






50. An increase in price or value of a stock