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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.
Limit order
NYSE minimum requirements
Stop order
dealer v. broker
2. A stock selling for less that $1/share; usually high risk
dealer v. broker
Blue chip stock
Penny stock
dealer v. broker
3. Once the stock price reaches the preset stop price the order is converted ito a limit order
red herring
NYSE
NYSE
stop-limit order
4. An order to a broker to sell (buy) when the price of a security falls (rises) to a designated level
No-load
Stop order
Potential loss
Appreciation
5. A market characterized by falling prices for securities
bid v. ask
Stock split
Limit order
Bear market
6. A list of the financial assets held by an individual or a bank or other financial institution
Stock broker
Portfolio
dealer v. broker
NASDAQ
7. A measure of stock market prices based on thirty leading companies of the new york stock exchange and nasdaq
OTC [Over-the-counter]
dutch auction underwriting
electronic communications networks (ECNs)
Dow Jones idustrial average
8. All of the investments - including stocks - bonds - mutual funds - options - and commodities - that are traded
Securities
syndicate
stop-limit order
venture capital VC
9. A certificate of debt (usually interest-bearing or discounted) that is issued by a government or corporation in order to raise money
Appreciation
Stop order
Bond
Bear market
10. 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
Limit order
third market v. fourth market
Dow Jones idustrial average
bid v. ask
11. A group of underwriters formed to share the risk and to help sell an issue
syndicate
Common stock
red herring
Stock broker
12. New York Stock Exchange
electronic communications networks (ECNs)
NYSE
Stock split
private equity
13. A corporation's first offer to sell stock to the public
over-the counter market
best efforts underwriting
IPO [Initial Public Offering]
venture capital VC
14. Stock from nationally recognized companies which dominate the industry often having annual revenue of one billion or more
Blue chip stock
bid v. ask
NYSE minimum requirements
Dow Jones idustrial average
15. The most basic form of ownership - including voting rights on major issues - in a company
syndicate
rights offer
Common stock
Discount broker
16. 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.
limit v. stop orders
seasoned equity offering (SEO)
NYSE minimum requirements
three ways of the secondary market
17. Also known as uniform price auction b/c all successful bidders pay the same price
dutch auction underwriting
electronic communications networks (ECNs)
IPO [Initial Public Offering]
Limit order
18. Also known as uniform price auction b/c all successful bidders pay the same price
syndicate
Discount broker
best efforts underwriting
dutch auction underwriting
19. Bid- price dealer is willing to pay - ask- price dealer will sell at
Mutual fund
NASDAQ
bid v. ask
three ways of the secondary market
20. Buying a stock at a price you set
rights offer
NYSE minimum requirements
Appreciation
Limit order
21. A market characterized by rising prices for securities
Bull market
Blue chip stock
bid v. ask
third market v. fourth market
22. 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
bid v. ask
over-the counter market
limit v. stop orders
23. Once the stock price reaches the preset stop price the order is converted ito a limit order
Market order
Mutual fund
syndicate
stop-limit order
24. Dealer- has inventory like car dealer - broker- brings buyers and sellers together (like real estate broker)
dealer v. broker
IPO [Initial Public Offering]
Stock broker
Bull market
25. An increase in price or value of a stock
red herring
Ticker
NYSE
Appreciation
26. Buys & sells for clients at a reduced commission. They offer little or no investment advice.
stop-limit order
prospectus
electronic communications networks (ECNs)
Discount broker
27. NASDAQ was opened to his which is a website that allowed investors to trade directly with one another;
electronic communications networks (ECNs)
AMEX
seasoned equity offering (SEO)
NYSE v. NASDAQ
28. 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
unseasoned equity offering
Limit order
Stock
29. All of the investments - including stocks - bonds - mutual funds - options - and commodities - that are traded
Securities
Dividend
Limit order
red herring
30. Price/earnings
dutch auction underwriting
firm commitment underwriting
P / E
Potential loss
31. Difference between closing price of previous day and current day
Market order
P / E
Net change
Ticker
32. A corporation's first offer to sell stock to the public
Potential loss
IPO [Initial Public Offering]
bid v. ask
Stock broker
33. NASDAQ is a computer network with no physical location and has a multiple market maker system rather than a specialist system
stop-sell v. stop-buy
dutch auction underwriting
Bull market
NYSE v. NASDAQ
34. 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
stop-sell v. stop-buy
electronic communications networks (ECNs)
Dow Jones idustrial average
NYSE Hybrid Market
35. Difference between closing price of previous day and current day
Bull market
Net change
NYSE minimum requirements
IPO [Initial Public Offering]
36. American Stock Exchange
Stock broker
Appreciation
syndicate
AMEX
37. Dealer- has inventory like car dealer - broker- brings buyers and sellers together (like real estate broker)
NYSE minimum requirements
Potential loss
firm commitment underwriting
dealer v. broker
38. An increase in price or value of a stock
Appreciation
venture capital VC
dealer v. broker
Bear market
39. A market characterized by falling prices for securities
AMEX
Bear market
Limit order
over-the counter market
40. Another name for IPO - b/c shares are not available to the public before the IPO
Stock broker
unseasoned equity offering
general cash offer
Bear market
41. A person who buys or sells stocks for another in exchange for a commission
rights offer
IPO [Initial Public Offering]
Stock broker
general cash offer
42. A computerized data system to provide brokers with price quotations for securities traded over the counter
Potential loss
third market v. fourth market
stop-limit order
NASDAQ
43. Securities initially offered only to existing owners
third market v. fourth market
Bull market
rights offer
Stock
44. NASDAQ was opened to his which is a website that allowed investors to trade directly with one another;
Net change
firm commitment underwriting
syndicate
electronic communications networks (ECNs)
45. Underwriter doesn't guarantee any particular amount of money to the issuer
NYSE
Bear market
Market order
best efforts underwriting
46. Securities market where dealers buy and sell securities for their own inventories; NASDAQ is one example
bid v. ask
general cash offer
over-the counter market
OTC [Over-the-counter]
47. American Stock Exchange
Blue chip stock
Fund manager
Portfolio
AMEX
48. A group of underwriters formed to share the risk and to help sell an issue
three ways of the secondary market
syndicate
dutch auction underwriting
electronic communications networks (ECNs)
49. Stop order is where the customer specifies a stop price in which once it's reached - it is converted into a market order
syndicate
three ways of the secondary market
limit v. stop orders
IPO [Initial Public Offering]
50. Financing for new - often high-risk ventures
red herring
Stop order
private equity
venture capital VC