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






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






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






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






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






7. Equity financing for nonpublic companies






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






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






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






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






12. A market characterized by rising prices for securities






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






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






15. When issuer sells the entire issue to the underwriters






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






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






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. A market characterized by falling prices for securities






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






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






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






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






24. Equity financing for nonpublic companies






25. Financing for new - often high-risk ventures






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






27. New York Stock Exchange






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






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






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






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






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






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






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






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






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






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






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






39. An increase in price or value of a stock






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






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






42. 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






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






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






45. A market characterized by rising prices for securities






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






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






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






49. American Stock Exchange






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