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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. Equity financing for nonpublic companies






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






3. A market characterized by falling prices for securities






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






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






6. 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






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






8. A certificate documenting the shareholder's ownership in the corporation. There is no guarantee of making money with a stock.






9. 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






10. American Stock Exchange






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






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






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






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






15. 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.






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






17. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






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






20. Also known as secondary and follow-on offering






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






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






23. Securities initially offered only to existing owners






24. Amount that you invest in securities






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






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






27. Price/earnings






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






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






30. Price/earnings






31. A market characterized by rising prices for securities






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






33. 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






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






35. Buying a stock at a price you set






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






37. Equity financing for nonpublic companies






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






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






40. When issuer sells the entire issue to the underwriters






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






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






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






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






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






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






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






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






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






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