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






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






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






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






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






6. Also known as secondary and follow-on offering






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






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






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






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






11. Financing for new - often high-risk ventures






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






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






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






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






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






17. When issuer sells the entire issue to the underwriters






18. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






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






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






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






23. Securities initially offered only to existing owners






24. Equity financing for nonpublic companies






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






26. A market characterized by rising prices for securities






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






28. 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.






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






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






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






32. Buying a stock at a price you set






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






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






35. Buying a stock at a price you set






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






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






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






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






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. 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






42. A market characterized by rising prices for securities






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






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






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






46. When issuer sells the entire issue to the underwriters






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






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. Amount that you invest in securities






50. Equity financing for nonpublic companies