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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. American Stock Exchange






2. 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






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






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






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






6. Equity financing for nonpublic companies






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






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






9. New York Stock Exchange






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






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






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






13. Securities initially offered only to existing owners






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






15. A market characterized by rising prices for securities






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






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






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






19. Financing for new - often high-risk ventures






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






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






22. A market characterized by rising prices for securities






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






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






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. An increase in price or value of a stock






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






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






29. When issuer sells the entire issue to the underwriters






30. An increase in price or value of a stock






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






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






33. 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






34. Price/earnings






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






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






37. American Stock Exchange






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






39. 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.






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






41. Also known as secondary and follow-on offering






42. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






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






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






46. Amount that you invest in securities






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






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






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






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