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






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






3. A market characterized by falling prices for securities






4. 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






5. Buying a stock at a price you set






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






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






8. 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






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






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






11. A corporation's first offer to sell stock to the public






12. When issuer sells the entire issue to the underwriters






13. 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






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






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






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






17. 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.






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






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






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






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






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






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






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






25. Equity financing for nonpublic companies






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






27. Securities initially offered only to existing owners






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






29. 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






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






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






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






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






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






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






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






37. American Stock Exchange






38. Amount that you invest in securities






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






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






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






42. 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)






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






44. 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






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






46. 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.






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






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






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






50. An increase in price or value of a stock







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