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






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






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






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






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






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






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






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






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






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






11. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






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






14. Amount that you invest in securities






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






16. American Stock Exchange






17. 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






18. An increase in price or value of a stock






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






20. New York Stock Exchange






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






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






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






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






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






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






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






28. 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






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






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






31. Equity financing for nonpublic companies






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






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






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






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






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






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






38. New York Stock Exchange






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






40. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






41. Financing for new - often high-risk ventures






42. American Stock Exchange






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






44. 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






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






46. Equity financing for nonpublic companies






47. A market characterized by falling prices for securities






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






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






50. Also known as secondary and follow-on offering