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






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






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






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






5. Financing for new - often high-risk ventures






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






8. A market characterized by falling prices for securities






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






10. 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






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






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






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






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






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






16. Another name for IPO - b/c shares are not available to the public before the IPO






17. Price/earnings






18. Also known as secondary and follow-on offering






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






20. 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






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






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






23. 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)






24. Amount that you invest in securities






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






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






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






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






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






30. A market characterized by rising prices for securities






31. 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






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






33. 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






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






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






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






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






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






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






40. Stop order is where the customer specifies a stop price in which once it's reached - it is converted into a market order






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






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






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






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






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






46. An increase in price or value of a stock






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






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






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






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