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






2. Buying a stock at a price you set






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






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






5. 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.






6. 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






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






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






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






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






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






12. 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






13. 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)






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






15. When issuer sells the entire issue to the underwriters






16. 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)






17. New York Stock Exchange






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






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






20. An order to a broker to sell (buy) when the price of a security falls (rises) to a designated level






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






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






23. A market characterized by falling prices for securities






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






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






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






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






28. An increase in price or value of a stock






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






30. Also known as secondary and follow-on offering






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






32. Financing for new - often high-risk ventures






33. Amount that you invest in securities






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






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






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






37. An increase in price or value of a stock






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






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






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






41. A market characterized by falling prices for securities






42. Equity financing for nonpublic companies






43. 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






44. Financing for new - often high-risk ventures






45. An order to a broker to sell (buy) when the price of a security falls (rises) to a designated level






46. Buying a stock at a price you set






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






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






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






50. A market characterized by rising prices for securities