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. 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






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






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






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






6. American Stock Exchange






7. When issuer sells the entire issue to the underwriters






8. American Stock Exchange






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






10. Buying a stock at a price you set






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






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






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






14. Buying a stock at a price you set






15. Securities initially offered only to existing owners






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






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






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






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






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






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






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






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






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






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






26. When issuer sells the entire issue to the underwriters






27. Equity financing for nonpublic companies






28. New York Stock Exchange






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






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






31. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






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. Financing for new - often high-risk ventures






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






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






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






38. Equity financing for nonpublic companies






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






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






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






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






43. Amount that you invest in securities






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






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






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






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






48. 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)






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






50. Amount that you invest in securities