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






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






3. A market characterized by falling prices for securities






4. An increase in price or value of a stock






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






7. Also known as secondary and follow-on offering






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






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






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






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






12. A market characterized by rising prices for securities






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






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






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






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






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






18. 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






19. New York Stock Exchange






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






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






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






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






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






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






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






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






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






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






30. When issuer sells the entire issue to the underwriters






31. An increase in price or value of a stock






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






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






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






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






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






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






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






39. 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.






40. 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






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






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






44. A market characterized by rising prices for securities






45. When issuer sells the entire issue to the underwriters






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






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






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






49. 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)






50. Buying a stock at a price you set