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






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






3. Price/earnings






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






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






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






7. American Stock Exchange






8. When issuer sells the entire issue to the underwriters






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. Also known as secondary and follow-on offering






11. American Stock Exchange






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






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






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






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






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






17. New York Stock Exchange






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






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






20. A market characterized by rising prices for securities






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






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






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






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






25. 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.






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






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






29. Mutual fund in which shares are sold without a commission or sales charge






30. 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.






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






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






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






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






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






36. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






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






39. Amount that you invest in securities






40. Financing for new - often high-risk ventures






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






42. An increase in price or value of a stock






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






44. Equity financing for nonpublic companies






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






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






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






48. Securities initially offered only to existing owners






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






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







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