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. Buying a stock at a price you set






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






3. 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.






4. A market characterized by falling prices for securities






5. Securities initially offered only to existing owners






6. A market characterized by rising prices for securities






7. Amount that you invest in securities






8. 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)






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






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






11. American Stock Exchange






12. Securities initially offered only to existing owners






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






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






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






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






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






18. Price/earnings






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






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






21. Financing for new - often high-risk ventures






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






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






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






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






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






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






28. An increase in price or value of a stock






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






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






31. A market characterized by falling prices for securities






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






33. 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






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






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






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






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






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






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






40. 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)






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






42. 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






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






44. Equity financing for nonpublic companies






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






46. 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






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






48. Also known as secondary and follow-on offering






49. Equity financing for nonpublic companies






50. New York Stock Exchange