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






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






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






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






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






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






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






9. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






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






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






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






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






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






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






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






18. Also known as secondary and follow-on offering






19. Dealer- has inventory like car dealer - broker- brings buyers and sellers together (like real estate broker)






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






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






22. 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






23. Price/earnings






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






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






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






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






28. Financing for new - often high-risk ventures






29. When issuer sells the entire issue to the underwriters






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






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






32. When issuer sells the entire issue to the underwriters






33. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






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






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






37. Financing for new - often high-risk ventures






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






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






40. American Stock Exchange






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






42. Also known as secondary and follow-on offering






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






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






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






46. Equity financing for nonpublic companies






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






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






49. 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






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