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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. 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
Potential loss
stop-limit order
third market v. fourth market
2. Amount that you invest in securities
Penny stock
AMEX
Potential loss
general cash offer
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
Bond
NYSE Hybrid Market
No-load
third market v. fourth market
4. Mutual fund in which shares are sold without a commission or sales charge
No-load
Portfolio
electronic communications networks (ECNs)
Discount broker
5. American Stock Exchange
AMEX
Stock broker
private equity
NASDAQ
6. The system that prints or dsplays last sale prices and the volume of securities transactions on exchanges on a moving tape
Ticker
Stop order
stop-sell v. stop-buy
P / E
7. Another name for IPO - b/c shares are not available to the public before the IPO
unseasoned equity offering
Common stock
firm commitment underwriting
P / E
8. Mutual fund in which shares are sold without a commission or sales charge
AMEX
third market v. fourth market
NYSE minimum requirements
No-load
9. NASDAQ was opened to his which is a website that allowed investors to trade directly with one another;
seasoned equity offering (SEO)
electronic communications networks (ECNs)
Limit order
Common stock
10. All of the investments - including stocks - bonds - mutual funds - options - and commodities - that are traded
Net change
Securities
private equity
Potential loss
11. Also known as uniform price auction b/c all successful bidders pay the same price
Market order
Stock broker
NYSE minimum requirements
dutch auction underwriting
12. Stock whose holders are guaranteed priority in the payment of dividends but whose holders have no voting rights
Limit order
bid v. ask
Preferred Stock
Stop order
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)
venture capital VC
Stock split
firm commitment underwriting
Penny stock
14. Equity financing for nonpublic companies
unseasoned equity offering
private equity
Portfolio
NYSE minimum requirements
15. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory
three ways of the secondary market
Dow Jones idustrial average
Fund manager
red herring
16. The market in which securities that are not listed on exchanges are traded
OTC [Over-the-counter]
P / E
firm commitment underwriting
rights offer
17. Financing for new - often high-risk ventures
Stop order
Stop order
venture capital VC
Stock
18. Securities initially offered only to existing owners
rights offer
electronic communications networks (ECNs)
Net change
Stock
19. Bid- price dealer is willing to pay - ask- price dealer will sell at
red herring
limit v. stop orders
bid v. ask
stop-sell v. stop-buy
20. Buying a stock at a price you set
Limit order
NYSE v. NASDAQ
IPO [Initial Public Offering]
AMEX
21. Fund that pools the savings of many individuals and invests this money in a variety of stocks - bonds - and other financial assets
Ticker
Mutual fund
dutch auction underwriting
NYSE
22. New York Stock Exchange
syndicate
three ways of the secondary market
three ways of the secondary market
NYSE
23. An order to a broker to sell or buy stocks or commodities at the prevailing market price
Market order
rights offer
bid v. ask
Ticker
24. All of the investments - including stocks - bonds - mutual funds - options - and commodities - that are traded
Stock broker
Stock split
Securities
Dow Jones idustrial average
25. Securities market where dealers buy and sell securities for their own inventories; NASDAQ is one example
NYSE v. NASDAQ
over-the counter market
bid v. ask
NYSE v. NASDAQ
26. Bid- price dealer is willing to pay - ask- price dealer will sell at
general cash offer
Net change
bid v. ask
Appreciation
27. A computerized data system to provide brokers with price quotations for securities traded over the counter
NASDAQ
Stock
NYSE minimum requirements
No-load
28. A certificate documenting the shareholder's ownership in the corporation. There is no guarantee of making money with a stock.
Mutual fund
NYSE minimum requirements
P / E
Stock
29. 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
seasoned equity offering (SEO)
NYSE
third market v. fourth market
30. The person(s) resposible for implementing a fund's investing strategy and managing its portfolio trading activities
Fund manager
dealer v. broker
Dividend
third market v. fourth market
31. A preliminary prospectus among investor to generate interest in the stock offering
seasoned equity offering (SEO)
three ways of the secondary market
red herring
P / E
32. Buying a stock at a price you set
Stock broker
Limit order
unseasoned equity offering
syndicate
33. Underwriter doesn't guarantee any particular amount of money to the issuer
best efforts underwriting
Fund manager
unseasoned equity offering
Common stock
34. NASDAQ was opened to his which is a website that allowed investors to trade directly with one another;
venture capital VC
Portfolio
electronic communications networks (ECNs)
venture capital VC
35. A market characterized by rising prices for securities
three ways of the secondary market
P / E
Bull market
Net change
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
IPO [Initial Public Offering]
NYSE Hybrid Market
Bear market
IPO [Initial Public Offering]
37. That part of the earnings of a corporation that is distributed to its shareholders
AMEX
Dividend
seasoned equity offering (SEO)
Stock
38. A certificate of debt (usually interest-bearing or discounted) that is issued by a government or corporation in order to raise money
Bond
stop-limit order
Stock split
stop-limit order
39. A corporation's first offer to sell stock to the public
Market order
NYSE v. NASDAQ
IPO [Initial Public Offering]
third market v. fourth market
40. Another name for IPO - b/c shares are not available to the public before the IPO
unseasoned equity offering
P / E
Bear market
NASDAQ
41. The most basic form of ownership - including voting rights on major issues - in a company
Common stock
P / E
NYSE
Portfolio
42. Detailed acct of company's financial position - its operations - and its investment plans for the future which is submitted to SEC for approval
dutch auction underwriting
Potential loss
prospectus
Penny stock
43. Fund that pools the savings of many individuals and invests this money in a variety of stocks - bonds - and other financial assets
Appreciation
seasoned equity offering (SEO)
No-load
Mutual fund
44. When issuer sells the entire issue to the underwriters
OTC [Over-the-counter]
electronic communications networks (ECNs)
firm commitment underwriting
Fund manager
45. The market in which securities that are not listed on exchanges are traded
general cash offer
Appreciation
NYSE
OTC [Over-the-counter]
46. Difference between closing price of previous day and current day
best efforts underwriting
Dow Jones idustrial average
Net change
seasoned equity offering (SEO)
47. A certificate documenting the shareholder's ownership in the corporation. There is no guarantee of making money with a stock.
seasoned equity offering (SEO)
Dow Jones idustrial average
unseasoned equity offering
Stock
48. A person who buys or sells stocks for another in exchange for a commission
Stock broker
OTC [Over-the-counter]
Dow Jones idustrial average
NYSE
49. 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
electronic communications networks (ECNs)
NYSE minimum requirements
prospectus
50. Securities initially offered only to existing owners
bid v. ask
best efforts underwriting
Potential loss
rights offer