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






2. An increase in price or value of a stock






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






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






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






6. Also known as secondary and follow-on offering






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






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






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






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






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






12. A market characterized by rising prices for securities






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






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






15. A market characterized by falling prices for securities






16. Equity financing for nonpublic companies






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






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






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






20. 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






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






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






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






24. Also known as secondary and follow-on offering






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






26. Equity financing for nonpublic companies






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






28. When issuer sells the entire issue to the underwriters






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






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






31. 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






32. An increase in price or value of a stock






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






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






35. 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)






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






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






38. When issuer sells the entire issue to the underwriters






39. Price/earnings






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






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






42. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






43. Financing for new - often high-risk ventures






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






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






46. Amount that you invest in securities






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






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






49. 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.






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