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Test your basic knowledge |
Stock Market Basics
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Subjects
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industries
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business-skills
Instructions:
Answer 50 questions in 15 minutes.
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study here
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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. Amount that you invest in securities
Fund manager
Potential loss
Stock
Mutual fund
2. Buys & sells for clients at a reduced commission. They offer little or no investment advice.
Bull market
Discount broker
Market order
stop-limit order
3. Financing for new - often high-risk ventures
rights offer
Bear market
venture capital VC
Preferred Stock
4. Buying a stock at a price you set
Limit order
Bull market
Dividend
NYSE Hybrid Market
5. 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
Preferred Stock
third market v. fourth market
dealer v. broker
Stock broker
6. Mutual fund in which shares are sold without a commission or sales charge
stop-sell v. stop-buy
No-load
Stock split
Bond
7. A certificate documenting the shareholder's ownership in the corporation. There is no guarantee of making money with a stock.
Bond
NYSE v. NASDAQ
Bull market
Stock
8. The system that prints or dsplays last sale prices and the volume of securities transactions on exchanges on a moving tape
Fund manager
Preferred Stock
Ticker
Common stock
9. Price/earnings
prospectus
electronic communications networks (ECNs)
P / E
venture capital VC
10. New York Stock Exchange
Mutual fund
Penny stock
NYSE
P / E
11. 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)
three ways of the secondary market
Stock split
Bull market
Blue chip stock
12. Stop order is where the customer specifies a stop price in which once it's reached - it is converted into a market order
firm commitment underwriting
third market v. fourth market
limit v. stop orders
Stock split
13. Once the stock price reaches the preset stop price the order is converted ito a limit order
Stock broker
unseasoned equity offering
Bond
stop-limit order
14. NASDAQ is a computer network with no physical location and has a multiple market maker system rather than a specialist system
NYSE v. NASDAQ
Fund manager
Net change
private equity
15. That part of the earnings of a corporation that is distributed to its shareholders
Market order
Dividend
Limit order
OTC [Over-the-counter]
16. Stock from nationally recognized companies which dominate the industry often having annual revenue of one billion or more
over-the counter market
Ticker
Blue chip stock
Bull market
17. Fund that pools the savings of many individuals and invests this money in a variety of stocks - bonds - and other financial assets
prospectus
Dow Jones idustrial average
NYSE
Mutual fund
18. A market characterized by falling prices for securities
Bear market
third market v. fourth market
AMEX
No-load
19. Difference between closing price of previous day and current day
best efforts underwriting
Stop order
Net change
three ways of the secondary market
20. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory
three ways of the secondary market
dutch auction underwriting
NYSE
Portfolio
21. A person who buys or sells stocks for another in exchange for a commission
over-the counter market
Common stock
Stock broker
bid v. ask
22. Securities market where dealers buy and sell securities for their own inventories; NASDAQ is one example
Blue chip stock
prospectus
over-the counter market
unseasoned equity offering
23. A stock selling for less that $1/share; usually high risk
best efforts underwriting
dealer v. broker
Blue chip stock
Penny stock
24. When issuer sells the entire issue to the underwriters
Dow Jones idustrial average
Ticker
Securities
firm commitment underwriting
25. 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
Dow Jones idustrial average
Blue chip stock
26. 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
Stock broker
NYSE Hybrid Market
Securities
stop-sell v. stop-buy
27. Buying a stock at a price you set
Blue chip stock
Stock
Limit order
NYSE
28. Securities or SEO offered to the public on a first-come first serve basis
general cash offer
syndicate
Stock split
NYSE v. NASDAQ
29. The market in which securities that are not listed on exchanges are traded
red herring
Penny stock
OTC [Over-the-counter]
over-the counter market
30. Equity financing for nonpublic companies
best efforts underwriting
general cash offer
dutch auction underwriting
private equity
31. Securities initially offered only to existing owners
Mutual fund
dealer v. broker
general cash offer
rights offer
32. A group of underwriters formed to share the risk and to help sell an issue
syndicate
Dow Jones idustrial average
prospectus
bid v. ask
33. The market in which securities that are not listed on exchanges are traded
Dividend
AMEX
OTC [Over-the-counter]
seasoned equity offering (SEO)
34. A group of underwriters formed to share the risk and to help sell an issue
Net change
syndicate
rights offer
Stock split
35. 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
third market v. fourth market
NYSE Hybrid Market
bid v. ask
Common stock
36. Amount that you invest in securities
Potential loss
Limit order
Securities
NYSE Hybrid Market
37. Bid- price dealer is willing to pay - ask- price dealer will sell at
bid v. ask
red herring
syndicate
Bond
38. Another name for IPO - b/c shares are not available to the public before the IPO
rights offer
Mutual fund
general cash offer
unseasoned equity offering
39. Underwriter doesn't guarantee any particular amount of money to the issuer
three ways of the secondary market
seasoned equity offering (SEO)
Blue chip stock
best efforts underwriting
40. Underwriter doesn't guarantee any particular amount of money to the issuer
best efforts underwriting
NYSE minimum requirements
NYSE v. NASDAQ
Stock
41. 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
Fund manager
Stock split
NYSE v. NASDAQ
42. A computerized data system to provide brokers with price quotations for securities traded over the counter
three ways of the secondary market
NASDAQ
rights offer
Bull market
43. 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.
Common stock
AMEX
Preferred Stock
NYSE minimum requirements
44. A list of the financial assets held by an individual or a bank or other financial institution
Market order
Portfolio
Stock split
OTC [Over-the-counter]
45. Another name for IPO - b/c shares are not available to the public before the IPO
general cash offer
Blue chip stock
stop-sell v. stop-buy
unseasoned equity offering
46. A certificate documenting the shareholder's ownership in the corporation. There is no guarantee of making money with a stock.
Market order
Stock
limit v. stop orders
private equity
47. Securities initially offered only to existing owners
rights offer
No-load
Bond
Common stock
48. The most basic form of ownership - including voting rights on major issues - in a company
Stock broker
OTC [Over-the-counter]
prospectus
Common stock
49. A person who buys or sells stocks for another in exchange for a commission
Dow Jones idustrial average
best efforts underwriting
NYSE
Stock broker
50. A market characterized by rising prices for securities
Stock
NYSE
private equity
Bull market
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