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Test your basic knowledge |
Stock Market Basics
Start Test
Study First
Subjects
:
industries
,
business-skills
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. Bid- price dealer is willing to pay - ask- price dealer will sell at
Mutual fund
bid v. ask
Bear market
Stock split
2. The system that prints or dsplays last sale prices and the volume of securities transactions on exchanges on a moving tape
Ticker
Stop order
No-load
syndicate
3. NASDAQ is a computer network with no physical location and has a multiple market maker system rather than a specialist system
electronic communications networks (ECNs)
NYSE Hybrid Market
NYSE v. NASDAQ
Ticker
4. 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)
NYSE minimum requirements
Bear market
Stock split
Net change
5. A corporation's first offer to sell stock to the public
Mutual fund
over-the counter market
IPO [Initial Public Offering]
rights offer
6. American Stock Exchange
Preferred Stock
Bull market
AMEX
Discount broker
7. 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.
Stock broker
AMEX
NYSE minimum requirements
Discount broker
8. A person who buys or sells stocks for another in exchange for a commission
Bond
Stock split
Stock broker
third market v. fourth market
9. Securities market where dealers buy and sell securities for their own inventories; NASDAQ is one example
three ways of the secondary market
Portfolio
Appreciation
over-the counter market
10. 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
stop-sell v. stop-buy
NYSE
over-the counter market
Market order
11. A market characterized by rising prices for securities
NYSE minimum requirements
Preferred Stock
Bear market
Bull market
12. A market characterized by falling prices for securities
Market order
rights offer
dutch auction underwriting
Bear market
13. 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)
Stock split
red herring
Stop order
OTC [Over-the-counter]
14. A certificate of debt (usually interest-bearing or discounted) that is issued by a government or corporation in order to raise money
Discount broker
Stock broker
Appreciation
Bond
15. The person(s) resposible for implementing a fund's investing strategy and managing its portfolio trading activities
Fund manager
Portfolio
Dow Jones idustrial average
AMEX
16. Detailed acct of company's financial position - its operations - and its investment plans for the future which is submitted to SEC for approval
Portfolio
stop-sell v. stop-buy
Common stock
prospectus
17. NASDAQ is a computer network with no physical location and has a multiple market maker system rather than a specialist system
Net change
NYSE v. NASDAQ
Stock split
over-the counter market
18. The most basic form of ownership - including voting rights on major issues - in a company
Bull market
third market v. fourth market
Common stock
AMEX
19. Another name for IPO - b/c shares are not available to the public before the IPO
Bond
over-the counter market
unseasoned equity offering
private equity
20. That part of the earnings of a corporation that is distributed to its shareholders
Mutual fund
Dow Jones idustrial average
Dividend
Stop order
21. A computerized data system to provide brokers with price quotations for securities traded over the counter
syndicate
Market order
syndicate
NASDAQ
22. Once the stock price reaches the preset stop price the order is converted ito a limit order
P / E
private equity
Portfolio
stop-limit order
23. American Stock Exchange
Potential loss
AMEX
Stock
Blue chip stock
24. Buying a stock at a price you set
Limit order
stop-sell v. stop-buy
Bull market
NYSE Hybrid Market
25. NASDAQ was opened to his which is a website that allowed investors to trade directly with one another;
over-the counter market
electronic communications networks (ECNs)
Penny stock
limit v. stop orders
26. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory
Ticker
Preferred Stock
three ways of the secondary market
limit v. stop orders
27. Detailed acct of company's financial position - its operations - and its investment plans for the future which is submitted to SEC for approval
prospectus
Common stock
limit v. stop orders
Stock
28. A market characterized by rising prices for securities
Mutual fund
Dow Jones idustrial average
Stock broker
Bull market
29. Dealer- has inventory like car dealer - broker- brings buyers and sellers together (like real estate broker)
seasoned equity offering (SEO)
Market order
dealer v. broker
stop-sell v. stop-buy
30. New York Stock Exchange
Preferred Stock
third market v. fourth market
Common stock
NYSE
31. That part of the earnings of a corporation that is distributed to its shareholders
Bear market
Dividend
NASDAQ
Stock split
32. Buys & sells for clients at a reduced commission. They offer little or no investment advice.
Preferred Stock
stop-sell v. stop-buy
electronic communications networks (ECNs)
Discount broker
33. A list of the financial assets held by an individual or a bank or other financial institution
general cash offer
Portfolio
electronic communications networks (ECNs)
Dow Jones idustrial average
34. Stop order is where the customer specifies a stop price in which once it's reached - it is converted into a market order
Stock broker
Market order
limit v. stop orders
Bull market
35. A certificate of debt (usually interest-bearing or discounted) that is issued by a government or corporation in order to raise money
NYSE
red herring
Bond
IPO [Initial Public Offering]
36. A stock selling for less that $1/share; usually high risk
Limit order
Penny stock
dutch auction underwriting
limit v. stop orders
37. The market in which securities that are not listed on exchanges are traded
NYSE v. NASDAQ
OTC [Over-the-counter]
limit v. stop orders
Blue chip stock
38. The person(s) resposible for implementing a fund's investing strategy and managing its portfolio trading activities
best efforts underwriting
OTC [Over-the-counter]
Fund manager
third market v. fourth market
39. The market in which securities that are not listed on exchanges are traded
dealer v. broker
Appreciation
OTC [Over-the-counter]
Stock
40. Stock from nationally recognized companies which dominate the industry often having annual revenue of one billion or more
over-the counter market
Blue chip stock
Stock
NASDAQ
41. Buying a stock at a price you set
Stock broker
IPO [Initial Public Offering]
P / E
Limit order
42. An order to a broker to sell (buy) when the price of a security falls (rises) to a designated level
Stock broker
dutch auction underwriting
best efforts underwriting
Stop order
43. Also known as uniform price auction b/c all successful bidders pay the same price
Ticker
Stop order
electronic communications networks (ECNs)
dutch auction underwriting
44. A group of underwriters formed to share the risk and to help sell an issue
Penny stock
Limit order
Ticker
syndicate
45. When issuer sells the entire issue to the underwriters
Blue chip stock
over-the counter market
Ticker
firm commitment underwriting
46. Stop order is where the customer specifies a stop price in which once it's reached - it is converted into a market order
limit v. stop orders
Portfolio
Dow Jones idustrial average
electronic communications networks (ECNs)
47. A group of underwriters formed to share the risk and to help sell an issue
rights offer
three ways of the secondary market
Stop order
syndicate
48. A measure of stock market prices based on thirty leading companies of the new york stock exchange and nasdaq
Market order
seasoned equity offering (SEO)
dealer v. broker
Dow Jones idustrial average
49. Underwriter doesn't guarantee any particular amount of money to the issuer
Discount broker
syndicate
best efforts underwriting
seasoned equity offering (SEO)
50. Financing for new - often high-risk ventures
venture capital VC
prospectus
P / E
Blue chip stock