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






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






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






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






5. Securities initially offered only to existing owners






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






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






8. Amount that you invest in securities






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






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






11. 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






12. An increase in price or value of a stock






13. Also known as secondary and follow-on offering






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






15. A market characterized by rising prices for securities






16. Equity financing for nonpublic companies






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






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






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






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






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






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






23. 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






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






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






26. 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)






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






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






29. Buying a stock at a price you set






30. 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






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






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






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






34. Buying a stock at a price you set






35. Amount that you invest in securities






36. Price/earnings






37. Equity financing for nonpublic companies






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






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






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






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






43. Also known as secondary and follow-on offering






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






45. American Stock Exchange






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






47. New York Stock Exchange






48. 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






49. Price/earnings






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