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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. An increase in price or value of a stock
Appreciation
dealer v. broker
Blue chip stock
NYSE v. NASDAQ
2. Securities or SEO offered to the public on a first-come first serve basis
best efforts underwriting
general cash offer
Discount broker
Dividend
3. A stock selling for less that $1/share; usually high risk
P / E
Stop order
Penny stock
NASDAQ
4. 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.
NYSE minimum requirements
Fund manager
seasoned equity offering (SEO)
dutch auction underwriting
5. A preliminary prospectus among investor to generate interest in the stock offering
red herring
NYSE minimum requirements
NASDAQ
Penny stock
6. Securities market where dealers buy and sell securities for their own inventories; NASDAQ is one example
general cash offer
Dividend
over-the counter market
Securities
7. A preliminary prospectus among investor to generate interest in the stock offering
red herring
Bear market
limit v. stop orders
No-load
8. A person who buys or sells stocks for another in exchange for a commission
Ticker
Stock broker
third market v. fourth market
NYSE
9. Securities or SEO offered to the public on a first-come first serve basis
Potential loss
Discount broker
Limit order
general cash offer
10. That part of the earnings of a corporation that is distributed to its shareholders
Dividend
red herring
over-the counter market
unseasoned equity offering
11. Securities initially offered only to existing owners
syndicate
rights offer
Common stock
Portfolio
12. The system that prints or dsplays last sale prices and the volume of securities transactions on exchanges on a moving tape
Stock broker
Bear market
three ways of the secondary market
Ticker
13. Securities market where dealers buy and sell securities for their own inventories; NASDAQ is one example
Stock
seasoned equity offering (SEO)
electronic communications networks (ECNs)
over-the counter market
14. All of the investments - including stocks - bonds - mutual funds - options - and commodities - that are traded
NASDAQ
prospectus
Securities
NYSE minimum requirements
15. An order to a broker to sell (buy) when the price of a security falls (rises) to a designated level
Stock broker
unseasoned equity offering
AMEX
Stop order
16. Underwriter doesn't guarantee any particular amount of money to the issuer
NASDAQ
best efforts underwriting
Net change
venture capital VC
17. Once the stock price reaches the preset stop price the order is converted ito a limit order
stop-limit order
Dividend
Blue chip stock
IPO [Initial Public Offering]
18. 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
venture capital VC
Preferred Stock
Stock
19. A certificate of debt (usually interest-bearing or discounted) that is issued by a government or corporation in order to raise money
syndicate
Blue chip stock
Bond
NYSE minimum requirements
20. That part of the earnings of a corporation that is distributed to its shareholders
Dividend
general cash offer
Common stock
Common stock
21. The most basic form of ownership - including voting rights on major issues - in a company
Common stock
NASDAQ
NYSE Hybrid Market
Dow Jones idustrial average
22. The most basic form of ownership - including voting rights on major issues - in a company
over-the counter market
Common stock
stop-sell v. stop-buy
red herring
23. Fund that pools the savings of many individuals and invests this money in a variety of stocks - bonds - and other financial assets
Penny stock
Mutual fund
NYSE Hybrid Market
firm commitment underwriting
24. Another name for IPO - b/c shares are not available to the public before the IPO
limit v. stop orders
Fund manager
unseasoned equity offering
electronic communications networks (ECNs)
25. A market characterized by falling prices for securities
Limit order
IPO [Initial Public Offering]
Bear market
rights offer
26. Securities initially offered only to existing owners
seasoned equity offering (SEO)
Preferred Stock
rights offer
Penny stock
27. A list of the financial assets held by an individual or a bank or other financial institution
NASDAQ
prospectus
Dividend
Portfolio
28. The person(s) resposible for implementing a fund's investing strategy and managing its portfolio trading activities
Fund manager
IPO [Initial Public Offering]
stop-limit order
Bear market
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
Net change
Blue chip stock
Ticker
third market v. fourth market
30. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory
third market v. fourth market
Common stock
Dividend
three ways of the secondary market
31. Buying a stock at a price you set
seasoned equity offering (SEO)
Limit order
Stock
P / E
32. Stop order is where the customer specifies a stop price in which once it's reached - it is converted into a market order
Appreciation
Stock split
limit v. stop orders
Net change
33. The system that prints or dsplays last sale prices and the volume of securities transactions on exchanges on a moving tape
Bear market
rights offer
Ticker
Bull market
34. A certificate documenting the shareholder's ownership in the corporation. There is no guarantee of making money with a stock.
Stock
Mutual fund
Blue chip stock
Bond
35. A group of underwriters formed to share the risk and to help sell an issue
Blue chip stock
Bond
syndicate
Fund manager
36. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory
Bond
red herring
red herring
three ways of the secondary market
37. A list of the financial assets held by an individual or a bank or other financial institution
Portfolio
Fund manager
Stop order
Stock split
38. Buys & sells for clients at a reduced commission. They offer little or no investment advice.
Discount broker
Portfolio
electronic communications networks (ECNs)
NYSE minimum requirements
39. The person(s) resposible for implementing a fund's investing strategy and managing its portfolio trading activities
NYSE
stop-limit order
Penny stock
Fund manager
40. American Stock Exchange
Net change
No-load
AMEX
seasoned equity offering (SEO)
41. Dealer- has inventory like car dealer - broker- brings buyers and sellers together (like real estate broker)
dealer v. broker
Blue chip stock
over-the counter market
Market order
42. 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
Bond
Securities
Stock split
third market v. fourth market
43. Mutual fund in which shares are sold without a commission or sales charge
P / E
over-the counter market
general cash offer
No-load
44. When issuer sells the entire issue to the underwriters
Stock broker
Stock
bid v. ask
firm commitment underwriting
45. When issuer sells the entire issue to the underwriters
Penny stock
dealer v. broker
firm commitment underwriting
Limit order
46. A market characterized by rising prices for securities
Stock split
Bull market
electronic communications networks (ECNs)
Net change
47. Difference between closing price of previous day and current day
Net change
stop-sell v. stop-buy
Bull market
NYSE
48. Equity financing for nonpublic companies
Bull market
Fund manager
private equity
Bond
49. Buys & sells for clients at a reduced commission. They offer little or no investment advice.
private equity
Discount broker
rights offer
Bull market
50. Financing for new - often high-risk ventures
unseasoned equity offering
Stock
venture capital VC
P / E