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. Price/earnings






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






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






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






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






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






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






9. A market characterized by falling prices for securities






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






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






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






13. When issuer sells the entire issue to the underwriters






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






15. 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.






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






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






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






19. 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)






20. Financing for new - often high-risk ventures






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






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






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






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






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. American Stock Exchange






27. Also known as secondary and follow-on offering






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






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






30. When issuer sells the entire issue to the underwriters






31. Buying a stock at a price you set






32. 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






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






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






35. New York Stock Exchange






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






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






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






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






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






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






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






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






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






45. A market characterized by rising prices for securities






46. Amount that you invest in securities






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






48. Amount that you invest in securities






49. Also known as secondary and follow-on offering






50. Price/earnings