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






2. 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.






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






4. A market characterized by rising prices for securities






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






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






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






8. A market characterized by rising prices for securities






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






10. Securities initially offered only to existing owners






11. Amount that you invest in securities






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






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






14. Buying a stock at a price you set






15. 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






16. New York Stock Exchange






17. Amount that you invest in securities






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






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






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






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






22. Equity financing for nonpublic companies






23. Price/earnings






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






25. An increase in price or value of a stock






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






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






28. American Stock Exchange






29. Price/earnings






30. 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






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






32. 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






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






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






35. 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






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






37. Also known as secondary and follow-on offering






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






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






40. When issuer sells the entire issue to the underwriters






41. 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






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






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






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






45. Financing for new - often high-risk ventures






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






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






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






49. 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






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