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. 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






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






3. A measure of stock market prices based on thirty leading companies of the new york stock exchange and nasdaq






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






5. An increase in price or value of a stock






6. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






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






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






10. Buying a stock at a price you set






11. An increase in price or value of a stock






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






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






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






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






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






17. 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.






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






19. New York Stock Exchange






20. 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






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






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






23. When issuer sells the entire issue to the underwriters






24. American Stock Exchange






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






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






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






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






29. 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






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






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






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






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






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






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






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






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






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






39. Securities initially offered only to existing owners






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






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






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






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






44. Price/earnings






45. 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






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






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






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






49. Equity financing for nonpublic companies






50. 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.