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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. Price/earnings






2. 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






3. 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






4. American Stock Exchange






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






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






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






8. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






10. New York Stock Exchange






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






12. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






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






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






16. Buying a stock at a price you set






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






18. 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






19. Securities initially offered only to existing owners






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






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






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






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






24. New York Stock Exchange






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






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






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






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






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






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






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






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






34. 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.






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






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






37. Price/earnings






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






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






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






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






42. When issuer sells the entire issue to the underwriters






43. Amount that you invest in securities






44. A market characterized by rising prices for securities






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






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






47. Also known as secondary and follow-on offering






48. Financing for new - often high-risk ventures






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






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