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






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






3. 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






4. A market characterized by rising prices for securities






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






6. Financing for new - often high-risk ventures






7. Amount that you invest in securities






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






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






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






11. 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






12. When issuer sells the entire issue to the underwriters






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






14. 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






15. 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






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






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






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






19. Securities initially offered only to existing owners






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






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






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






23. An increase in price or value of a stock






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






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






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






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






28. American Stock Exchange






29. A market characterized by falling prices for securities






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






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






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






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






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






35. Price/earnings






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






37. Also known as uniform price auction b/c all successful bidders pay the same price






38. When issuer sells the entire issue to the underwriters






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






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






42. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






43. 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)






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






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






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






47. New York Stock Exchange






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






49. Buying a stock at a price you set






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







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