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






2. NASDAQ is a computer network with no physical location and has a multiple market maker system rather than a specialist system






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






4. Securities initially offered only to existing owners






5. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






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






8. 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.






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






10. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






12. Price/earnings






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






14. Financing for new - often high-risk ventures






15. Securities initially offered only to existing owners






16. A corporation's first offer to sell stock to the public






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






18. Also known as secondary and follow-on offering






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






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






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






22. 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






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






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






25. 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.






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






27. Also known as secondary and follow-on offering






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






29. A market characterized by falling prices for securities






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






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






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






33. A stock selling for less that $1/share; usually high risk






34. 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






35. Also known as uniform price auction b/c all successful bidders pay the same price






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






37. Also known as uniform price auction b/c all successful bidders pay the same price






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






39. Amount that you invest in securities






40. When issuer sells the entire issue to the underwriters






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






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






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






44. American Stock Exchange






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






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






47. The market in which securities that are not listed on exchanges are traded






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






49. 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






50. New York Stock Exchange