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






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






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






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






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






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






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






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






9. 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






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






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






12. New York Stock Exchange






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






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






15. Amount that you invest in securities






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






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






18. American Stock Exchange






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






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






21. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






23. Securities initially offered only to existing owners






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






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






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






27. A market characterized by rising prices for securities






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






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






30. Amount that you invest in securities






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






32. Securities initially offered only to existing owners






33. Also known as secondary and follow-on offering






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






35. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






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






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






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






40. Financing for new - often high-risk ventures






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






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






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






44. Buying a stock at a price you set






45. An increase in price or value of a stock






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






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






48. 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






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






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