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. 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






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






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






4. Amount that you invest in securities






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






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






7. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






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






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






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






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






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






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






15. 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






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






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






18. Securities initially offered only to existing owners






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






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






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






23. Price/earnings






24. Securities initially offered only to existing owners






25. An increase in price or value of a stock






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






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






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






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






30. When issuer sells the entire issue to the underwriters






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






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






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






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






35. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






37. New York Stock Exchange






38. When issuer sells the entire issue to the underwriters






39. 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)






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






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






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






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






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






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






46. 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






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






48. A market characterized by rising prices for securities






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






50. 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)