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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. A person who buys or sells stocks for another in exchange for a commission
AMEX
Stock broker
over-the counter market
Preferred Stock
2. 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
Common stock
unseasoned equity offering
3. 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
Market order
NYSE Hybrid Market
firm commitment underwriting
Dow Jones idustrial average
4. Stock from nationally recognized companies which dominate the industry often having annual revenue of one billion or more
dutch auction underwriting
Blue chip stock
Bear market
limit v. stop orders
5. Once the stock price reaches the preset stop price the order is converted ito a limit order
stop-limit order
Penny stock
Bond
Discount broker
6. A market characterized by rising prices for securities
Bull market
private equity
bid v. ask
Mutual fund
7. The person(s) resposible for implementing a fund's investing strategy and managing its portfolio trading activities
Fund manager
dutch auction underwriting
over-the counter market
third market v. fourth market
8. 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
Stock split
third market v. fourth market
dealer v. broker
OTC [Over-the-counter]
9. Buys & sells for clients at a reduced commission. They offer little or no investment advice.
Discount broker
OTC [Over-the-counter]
Market order
syndicate
10. A market characterized by falling prices for securities
Net change
syndicate
Bear market
Discount broker
11. 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
Stock split
No-load
Potential loss
12. That part of the earnings of a corporation that is distributed to its shareholders
Net change
Penny stock
Dividend
Bull market
13. That part of the earnings of a corporation that is distributed to its shareholders
prospectus
third market v. fourth market
Dividend
No-load
14. An increase in price or value of a stock
P / E
Fund manager
Appreciation
AMEX
15. A corporation's first offer to sell stock to the public
Stock broker
No-load
IPO [Initial Public Offering]
Preferred Stock
16. Amount that you invest in securities
Potential loss
unseasoned equity offering
private equity
prospectus
17. New York Stock Exchange
NYSE
Stop order
seasoned equity offering (SEO)
Stock broker
18. NASDAQ is a computer network with no physical location and has a multiple market maker system rather than a specialist system
NASDAQ
Ticker
Preferred Stock
NYSE v. NASDAQ
19. Securities market where dealers buy and sell securities for their own inventories; NASDAQ is one example
P / E
Stock broker
over-the counter market
OTC [Over-the-counter]
20. The system that prints or dsplays last sale prices and the volume of securities transactions on exchanges on a moving tape
Ticker
NYSE
Blue chip stock
three ways of the secondary market
21. A list of the financial assets held by an individual or a bank or other financial institution
Portfolio
Stock split
dutch auction underwriting
NYSE Hybrid Market
22. A certificate of debt (usually interest-bearing or discounted) that is issued by a government or corporation in order to raise money
Mutual fund
Bond
Stock split
Dividend
23. The market in which securities that are not listed on exchanges are traded
private equity
prospectus
OTC [Over-the-counter]
Stock broker
24. NASDAQ is a computer network with no physical location and has a multiple market maker system rather than a specialist system
Fund manager
three ways of the secondary market
Market order
NYSE v. NASDAQ
25. Difference between closing price of previous day and current day
Net change
three ways of the secondary market
private equity
over-the counter market
26. Another name for IPO - b/c shares are not available to the public before the IPO
OTC [Over-the-counter]
dutch auction underwriting
Ticker
unseasoned equity offering
27. Securities or SEO offered to the public on a first-come first serve basis
No-load
over-the counter market
Stock broker
general cash offer
28. Mutual fund in which shares are sold without a commission or sales charge
No-load
Bond
over-the counter market
red herring
29. When issuer sells the entire issue to the underwriters
Portfolio
seasoned equity offering (SEO)
stop-sell v. stop-buy
firm commitment underwriting
30. A group of underwriters formed to share the risk and to help sell an issue
Dow Jones idustrial average
red herring
No-load
syndicate
31. Price/earnings
Discount broker
P / E
red herring
IPO [Initial Public Offering]
32. A market characterized by rising prices for securities
three ways of the secondary market
Bull market
Fund manager
stop-sell v. stop-buy
33. A list of the financial assets held by an individual or a bank or other financial institution
IPO [Initial Public Offering]
Stop order
best efforts underwriting
Portfolio
34. New York Stock Exchange
Portfolio
Bond
NYSE
electronic communications networks (ECNs)
35. NASDAQ was opened to his which is a website that allowed investors to trade directly with one another;
electronic communications networks (ECNs)
Common stock
bid v. ask
Fund manager
36. 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
NYSE Hybrid Market
AMEX
Stop order
NYSE v. NASDAQ
37. The market in which securities that are not listed on exchanges are traded
Common stock
dealer v. broker
OTC [Over-the-counter]
venture capital VC
38. The system that prints or dsplays last sale prices and the volume of securities transactions on exchanges on a moving tape
three ways of the secondary market
Ticker
Fund manager
NASDAQ
39. 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
NYSE v. NASDAQ
stop-sell v. stop-buy
Fund manager
unseasoned equity offering
40. Financing for new - often high-risk ventures
general cash offer
venture capital VC
Stock
Portfolio
41. Mutual fund in which shares are sold without a commission or sales charge
Stock split
Blue chip stock
No-load
NASDAQ
42. Underwriter doesn't guarantee any particular amount of money to the issuer
best efforts underwriting
Dividend
Portfolio
NYSE
43. American Stock Exchange
NYSE
electronic communications networks (ECNs)
stop-sell v. stop-buy
AMEX
44. A measure of stock market prices based on thirty leading companies of the new york stock exchange and nasdaq
Appreciation
AMEX
Dow Jones idustrial average
Dividend
45. Also known as uniform price auction b/c all successful bidders pay the same price
dutch auction underwriting
Dow Jones idustrial average
Limit order
general cash offer
46. 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.
IPO [Initial Public Offering]
NYSE minimum requirements
Ticker
bid v. ask
47. 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
third market v. fourth market
Bull market
Stock split
Preferred Stock
48. An increase in price or value of a stock
Bull market
Portfolio
Appreciation
Common stock
49. A computerized data system to provide brokers with price quotations for securities traded over the counter
NASDAQ
Stock broker
NYSE
Discount broker
50. Another name for IPO - b/c shares are not available to the public before the IPO
bid v. ask
Bull market
Blue chip stock
unseasoned equity offering