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






2. Buying a stock at a price you set






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






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






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






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






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






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






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






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






11. Amount that you invest in securities






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






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






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






15. Buying a stock at a price you set






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






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






18. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






19. Equity financing for nonpublic companies






20. 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)






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






22. When issuer sells the entire issue to the underwriters






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






24. 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






25. 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.






26. New York Stock Exchange






27. 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)






28. A market characterized by rising prices for securities






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






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






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






32. 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






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






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






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






36. Equity financing for nonpublic companies






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






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






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






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






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






42. An increase in price or value of a stock






43. New York Stock Exchange






44. Price/earnings






45. A market characterized by falling prices for securities






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






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






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






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






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