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






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






3. A market characterized by falling prices for securities






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






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






6. Also known as secondary and follow-on offering






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






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






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






10. Price/earnings






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






12. When issuer sells the entire issue to the underwriters






13. Amount that you invest in securities






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






15. 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






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






17. 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.






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






19. 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






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






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






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






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






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






25. A market characterized by rising prices for securities






26. Financing for new - often high-risk ventures






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






28. American Stock Exchange






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






30. Buying a stock at a price you set






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






32. An increase in price or value of a stock






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






34. Amount that you invest in securities






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






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






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






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






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






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






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






42. 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.






43. 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






44. Equity financing for nonpublic companies






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






46. 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






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






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






49. 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






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