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






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






3. New York Stock Exchange






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






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






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






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






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






9. Buying a stock at a price you set






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






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






12. Financing for new - often high-risk ventures






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






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






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






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






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






18. Price/earnings






19. An increase in price or value of a stock






20. Amount that you invest in securities






21. Securities initially offered only to existing owners






22. American Stock Exchange






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






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






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






26. A market characterized by rising prices for securities






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






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






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






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






31. Amount that you invest in securities






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






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






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






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






36. When issuer sells the entire issue to the underwriters






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






38. When issuer sells the entire issue to the underwriters






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






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






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






42. Securities initially offered only to existing owners






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






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






45. Also known as secondary and follow-on offering






46. American Stock Exchange






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






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






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






50. 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