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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. 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






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






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






4. Amount that you invest in securities






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






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






7. 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






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






9. 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)






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






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






12. New York Stock Exchange






13. Equity financing for nonpublic companies






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






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






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






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






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






19. 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)






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






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






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






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






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






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






26. 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






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






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






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






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






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






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






33. When issuer sells the entire issue to the underwriters






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






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






36. Buying a stock at a price you set






37. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






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






40. Price/earnings






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






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






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






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






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






46. An increase in price or value of a stock






47. 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.






48. American Stock Exchange






49. A market characterized by falling prices for securities






50. Securities initially offered only to existing owners







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