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






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






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






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






5. 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.






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






7. 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






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






9. Equity financing for nonpublic companies






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






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






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






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






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






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






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






17. American Stock Exchange






18. When issuer sells the entire issue to the underwriters






19. Price/earnings






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






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






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






23. Amount that you invest in securities






24. Amount that you invest in securities






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






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






27. New York Stock Exchange






28. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






29. Securities initially offered only to existing owners






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






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






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






33. Financing for new - often high-risk ventures






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






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






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






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






38. 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






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






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






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






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






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






44. Also known as secondary and follow-on offering






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






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






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






48. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






49. Equity financing for nonpublic companies






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