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Test your basic knowledge |
Stock Market Basics
Start Test
Study First
Subjects
:
industries
,
business-skills
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. 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.
venture capital VC
stop-limit order
NYSE minimum requirements
Mutual fund
2. Securities market where dealers buy and sell securities for their own inventories; NASDAQ is one example
dutch auction underwriting
firm commitment underwriting
IPO [Initial Public Offering]
over-the counter market
3. When issuer sells the entire issue to the underwriters
firm commitment underwriting
NYSE v. NASDAQ
NYSE minimum requirements
Blue chip stock
4. Another name for IPO - b/c shares are not available to the public before the IPO
syndicate
Appreciation
unseasoned equity offering
venture capital VC
5. A stock selling for less that $1/share; usually high risk
OTC [Over-the-counter]
Penny stock
NYSE v. NASDAQ
red herring
6. A computerized data system to provide brokers with price quotations for securities traded over the counter
Market order
three ways of the secondary market
NASDAQ
general cash offer
7. Securities market where dealers buy and sell securities for their own inventories; NASDAQ is one example
over-the counter market
electronic communications networks (ECNs)
Stop order
Stop order
8. NASDAQ is a computer network with no physical location and has a multiple market maker system rather than a specialist system
Common stock
NYSE minimum requirements
Bear market
NYSE v. NASDAQ
9. Amount that you invest in securities
red herring
Ticker
Bull market
Potential loss
10. The market in which securities that are not listed on exchanges are traded
dealer v. broker
OTC [Over-the-counter]
NYSE
NYSE Hybrid Market
11. A certificate documenting the shareholder's ownership in the corporation. There is no guarantee of making money with a stock.
Stock split
Preferred Stock
syndicate
Stock
12. The system that prints or dsplays last sale prices and the volume of securities transactions on exchanges on a moving tape
Ticker
syndicate
unseasoned equity offering
Dividend
13. A corporation's first offer to sell stock to the public
No-load
third market v. fourth market
IPO [Initial Public Offering]
Dividend
14. Detailed acct of company's financial position - its operations - and its investment plans for the future which is submitted to SEC for approval
NYSE
Stock
prospectus
No-load
15. An increase in price or value of a stock
over-the counter market
Appreciation
unseasoned equity offering
syndicate
16. The most basic form of ownership - including voting rights on major issues - in a company
No-load
Common stock
dealer v. broker
Bear market
17. Stop order is where the customer specifies a stop price in which once it's reached - it is converted into a market order
general cash offer
Penny stock
Securities
limit v. stop orders
18. A market characterized by falling prices for securities
dealer v. broker
Bull market
limit v. stop orders
Bear market
19. A market characterized by rising prices for securities
stop-limit order
NYSE Hybrid Market
Bull market
NYSE v. NASDAQ
20. Financing for new - often high-risk ventures
Stop order
venture capital VC
over-the counter market
general cash offer
21. A list of the financial assets held by an individual or a bank or other financial institution
private equity
Bond
Portfolio
Appreciation
22. Underwriter doesn't guarantee any particular amount of money to the issuer
Mutual fund
best efforts underwriting
general cash offer
Portfolio
23. Also known as uniform price auction b/c all successful bidders pay the same price
Bull market
Ticker
Portfolio
dutch auction underwriting
24. 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
NYSE
third market v. fourth market
Limit order
Stock broker
25. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory
NYSE minimum requirements
Portfolio
bid v. ask
three ways of the secondary market
26. 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
Stop order
NYSE
prospectus
third market v. fourth market
27. 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
Limit order
NYSE Hybrid Market
Mutual fund
AMEX
28. Another name for IPO - b/c shares are not available to the public before the IPO
Bond
three ways of the secondary market
Market order
unseasoned equity offering
29. That part of the earnings of a corporation that is distributed to its shareholders
prospectus
IPO [Initial Public Offering]
Mutual fund
Dividend
30. Stock from nationally recognized companies which dominate the industry often having annual revenue of one billion or more
unseasoned equity offering
Blue chip stock
NYSE v. NASDAQ
NYSE v. NASDAQ
31. American Stock Exchange
IPO [Initial Public Offering]
Stock
AMEX
NYSE v. NASDAQ
32. A group of underwriters formed to share the risk and to help sell an issue
bid v. ask
OTC [Over-the-counter]
syndicate
Blue chip stock
33. Buys & sells for clients at a reduced commission. They offer little or no investment advice.
private equity
IPO [Initial Public Offering]
Discount broker
dutch auction underwriting
34. NASDAQ is a computer network with no physical location and has a multiple market maker system rather than a specialist system
Penny stock
NYSE v. NASDAQ
No-load
third market v. fourth market
35. Price/earnings
rights offer
private equity
Bond
P / E
36. 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)
syndicate
Stock split
rights offer
Bear market
37. The system that prints or dsplays last sale prices and the volume of securities transactions on exchanges on a moving tape
over-the counter market
Ticker
Bear market
Blue chip stock
38. Stop order is where the customer specifies a stop price in which once it's reached - it is converted into a market order
red herring
limit v. stop orders
Securities
electronic communications networks (ECNs)
39. The most basic form of ownership - including voting rights on major issues - in a company
venture capital VC
Portfolio
Potential loss
Common stock
40. Buys & sells for clients at a reduced commission. They offer little or no investment advice.
Stock
Discount broker
Preferred Stock
Dow Jones idustrial average
41. The market in which securities that are not listed on exchanges are traded
dutch auction underwriting
Ticker
OTC [Over-the-counter]
stop-limit order
42. A stock selling for less that $1/share; usually high risk
dealer v. broker
Penny stock
Common stock
Potential loss
43. A person who buys or sells stocks for another in exchange for a commission
Stop order
best efforts underwriting
Stock broker
IPO [Initial Public Offering]
44. An increase in price or value of a stock
Discount broker
Appreciation
Bull market
Discount broker
45. That part of the earnings of a corporation that is distributed to its shareholders
Dividend
Bear market
Appreciation
P / E
46. Price/earnings
IPO [Initial Public Offering]
P / E
NYSE v. NASDAQ
red herring
47. A preliminary prospectus among investor to generate interest in the stock offering
dutch auction underwriting
Stock
Appreciation
red herring
48. Bid- price dealer is willing to pay - ask- price dealer will sell at
AMEX
Stop order
bid v. ask
venture capital VC
49. Fund that pools the savings of many individuals and invests this money in a variety of stocks - bonds - and other financial assets
Stock
NASDAQ
Mutual fund
Dividend
50. 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)
Stock split
Dividend
dealer v. broker
Stock