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






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






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






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






6. A market characterized by rising prices for securities






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






8. 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






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






10. A market characterized by falling prices for securities






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)






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






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






14. An increase in price or value of a stock






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






16. Amount that you invest in securities






17. New York Stock Exchange






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






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






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






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






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






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






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






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






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






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






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






29. When issuer sells the entire issue to the underwriters






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






31. Price/earnings






32. A market characterized by rising prices for securities






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






34. New York Stock Exchange






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






36. 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






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






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






39. 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






40. Financing for new - often high-risk ventures






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






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






43. American Stock Exchange






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






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






46. 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.






47. 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






48. An increase in price or value of a stock






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






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