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Test your basic knowledge |
Stock Market Basics
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Subjects
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industries
,
business-skills
Instructions:
Answer 50 questions in 15 minutes.
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study here
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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
NYSE minimum requirements
Bond
Limit order
Portfolio
2. The person(s) resposible for implementing a fund's investing strategy and managing its portfolio trading activities
No-load
Fund manager
Ticker
Penny stock
3. A measure of stock market prices based on thirty leading companies of the new york stock exchange and nasdaq
Dow Jones idustrial average
Common stock
prospectus
Limit order
4. Mutual fund in which shares are sold without a commission or sales charge
Common stock
No-load
rights offer
Dow Jones idustrial average
5. Detailed acct of company's financial position - its operations - and its investment plans for the future which is submitted to SEC for approval
prospectus
NYSE minimum requirements
dutch auction underwriting
stop-sell v. stop-buy
6. A market characterized by rising prices for securities
Bull market
seasoned equity offering (SEO)
Portfolio
Discount broker
7. A corporation's first offer to sell stock to the public
Appreciation
IPO [Initial Public Offering]
stop-sell v. stop-buy
firm commitment underwriting
8. A computerized data system to provide brokers with price quotations for securities traded over the counter
Stop order
NASDAQ
Bond
P / E
9. A certificate documenting the shareholder's ownership in the corporation. There is no guarantee of making money with a stock.
general cash offer
Stock broker
Stock
three ways of the secondary market
10. Financing for new - often high-risk ventures
red herring
Market order
NASDAQ
venture capital VC
11. The most basic form of ownership - including voting rights on major issues - in a company
Common stock
P / E
dutch auction underwriting
stop-sell v. stop-buy
12. Difference between closing price of previous day and current day
unseasoned equity offering
Preferred Stock
Net change
limit v. stop orders
13. That part of the earnings of a corporation that is distributed to its shareholders
Stock
Discount broker
Dividend
venture capital VC
14. The system that prints or dsplays last sale prices and the volume of securities transactions on exchanges on a moving tape
Stock split
over-the counter market
Ticker
Potential loss
15. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory
Stop order
Preferred Stock
three ways of the secondary market
Stock split
16. An order to a broker to sell or buy stocks or commodities at the prevailing market price
Potential loss
Appreciation
Market order
Blue chip stock
17. American Stock Exchange
AMEX
Preferred Stock
firm commitment underwriting
P / E
18. NASDAQ was opened to his which is a website that allowed investors to trade directly with one another;
Net change
Appreciation
bid v. ask
electronic communications networks (ECNs)
19. A certificate of debt (usually interest-bearing or discounted) that is issued by a government or corporation in order to raise money
Bond
P / E
Penny stock
best efforts underwriting
20. A group of underwriters formed to share the risk and to help sell an issue
Portfolio
syndicate
general cash offer
AMEX
21. A stock selling for less that $1/share; usually high risk
No-load
Penny stock
Appreciation
Bear market
22. Financing for new - often high-risk ventures
venture capital VC
P / E
Stop order
red herring
23. Buying a stock at a price you set
Common stock
Bond
Dow Jones idustrial average
Limit order
24. Price/earnings
NYSE v. NASDAQ
prospectus
P / E
Appreciation
25. New York Stock Exchange
NYSE
Penny stock
Net change
electronic communications networks (ECNs)
26. A certificate documenting the shareholder's ownership in the corporation. There is no guarantee of making money with a stock.
Stock
Stop order
Bear market
Stock split
27. A preliminary prospectus among investor to generate interest in the stock offering
red herring
over-the counter market
Market order
rights offer
28. That part of the earnings of a corporation that is distributed to its shareholders
Bear market
Mutual fund
Dividend
IPO [Initial Public Offering]
29. Also known as secondary and follow-on offering
Net change
seasoned equity offering (SEO)
stop-limit order
general cash offer
30. An order to a broker to sell (buy) when the price of a security falls (rises) to a designated level
Limit order
syndicate
Potential loss
Stop order
31. Difference between closing price of previous day and current day
Bull market
Preferred Stock
seasoned equity offering (SEO)
Net change
32. Price/earnings
Bear market
P / E
stop-limit order
Bond
33. 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
third market v. fourth market
NYSE
Discount broker
P / E
34. A corporation's first offer to sell stock to the public
IPO [Initial Public Offering]
unseasoned equity offering
three ways of the secondary market
Stock split
35. Bid- price dealer is willing to pay - ask- price dealer will sell at
bid v. ask
unseasoned equity offering
Blue chip stock
Portfolio
36. A computerized data system to provide brokers with price quotations for securities traded over the counter
Stock
unseasoned equity offering
NASDAQ
NYSE minimum requirements
37. Underwriter doesn't guarantee any particular amount of money to the issuer
NYSE v. NASDAQ
best efforts underwriting
seasoned equity offering (SEO)
bid v. ask
38. Buys & sells for clients at a reduced commission. They offer little or no investment advice.
Stop order
rights offer
NYSE
Discount broker
39. Securities or SEO offered to the public on a first-come first serve basis
Stop order
Stock
general cash offer
private equity
40. The market in which securities that are not listed on exchanges are traded
over-the counter market
Penny stock
dealer v. broker
OTC [Over-the-counter]
41. 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)
Limit order
Stock split
Fund manager
limit v. stop orders
42. Once the stock price reaches the preset stop price the order is converted ito a limit order
No-load
Preferred Stock
stop-limit order
third market v. fourth market
43. The system that prints or dsplays last sale prices and the volume of securities transactions on exchanges on a moving tape
stop-limit order
Ticker
Common stock
Net change
44. Stock from nationally recognized companies which dominate the industry often having annual revenue of one billion or more
Blue chip stock
best efforts underwriting
Stock
Appreciation
45. Securities market where dealers buy and sell securities for their own inventories; NASDAQ is one example
over-the counter market
firm commitment underwriting
Ticker
Mutual fund
46. Stop order is where the customer specifies a stop price in which once it's reached - it is converted into a market order
electronic communications networks (ECNs)
stop-sell v. stop-buy
limit v. stop orders
Stock
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
OTC [Over-the-counter]
Appreciation
third market v. fourth market
Potential loss
48. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory
three ways of the secondary market
Net change
electronic communications networks (ECNs)
Stock
49. NASDAQ is a computer network with no physical location and has a multiple market maker system rather than a specialist system
Bond
NYSE v. NASDAQ
best efforts underwriting
P / E
50. The most basic form of ownership - including voting rights on major issues - in a company
rights offer
NYSE v. NASDAQ
three ways of the secondary market
Common stock
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