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






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






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






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






5. Equity financing for nonpublic companies






6. An increase in price or value of a stock






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






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






9. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






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






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






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






14. New York Stock Exchange






15. A market characterized by rising prices for securities






16. 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)






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






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






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






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






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






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






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






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






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






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






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






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






29. When issuer sells the entire issue to the underwriters






30. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






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






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






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






35. Also known as secondary and follow-on offering






36. A market characterized by falling prices for securities






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






38. An increase in price or value of a stock






39. When issuer sells the entire issue to the underwriters






40. Amount that you invest in securities






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






42. 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






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






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






45. A market characterized by rising prices for securities






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






47. Price/earnings






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






49. A preliminary prospectus among investor to generate interest in the stock offering






50. New York Stock Exchange