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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 order to a broker to sell (buy) when the price of a security falls (rises) to a designated level
syndicate
over-the counter market
Limit order
Stop order
2. That part of the earnings of a corporation that is distributed to its shareholders
Dividend
Stock split
Bond
dealer v. broker
3. Securities or SEO offered to the public on a first-come first serve basis
Net change
general cash offer
Dividend
Bond
4. American Stock Exchange
Fund manager
limit v. stop orders
AMEX
Limit order
5. A market characterized by rising prices for securities
NYSE Hybrid Market
Bull market
venture capital VC
dealer v. broker
6. NASDAQ is a computer network with no physical location and has a multiple market maker system rather than a specialist system
Appreciation
Portfolio
NYSE v. NASDAQ
Bond
7. Equity financing for nonpublic companies
third market v. fourth market
Dow Jones idustrial average
private equity
syndicate
8. 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
general cash offer
Bond
firm commitment underwriting
9. Stock whose holders are guaranteed priority in the payment of dividends but whose holders have no voting rights
Appreciation
Preferred Stock
NYSE Hybrid Market
Potential loss
10. A market characterized by rising prices for securities
rights offer
Stock broker
Bull market
Stock split
11. When issuer sells the entire issue to the underwriters
firm commitment underwriting
Market order
Stop order
Stock broker
12. The most basic form of ownership - including voting rights on major issues - in a company
Stock
Mutual fund
Bond
Common stock
13. Difference between closing price of previous day and current day
Net change
Bull market
NASDAQ
Stop order
14. 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)
IPO [Initial Public Offering]
P / E
Stock split
Portfolio
15. Also known as uniform price auction b/c all successful bidders pay the same price
NASDAQ
dutch auction underwriting
Bond
Stop order
16. An order to a broker to sell (buy) when the price of a security falls (rises) to a designated level
Potential loss
Stop order
Securities
best efforts underwriting
17. A market characterized by falling prices for securities
Bear market
Limit order
Potential loss
NYSE Hybrid Market
18. An order to a broker to sell or buy stocks or commodities at the prevailing market price
private equity
Market order
firm commitment underwriting
Potential loss
19. A person who buys or sells stocks for another in exchange for a commission
Discount broker
private equity
Stock broker
No-load
20. Stop order is where the customer specifies a stop price in which once it's reached - it is converted into a market order
Potential loss
NYSE
limit v. stop orders
Appreciation
21. 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
Stock broker
Portfolio
Stop order
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
bid v. ask
AMEX
rights offer
third market v. fourth market
23. NASDAQ was opened to his which is a website that allowed investors to trade directly with one another;
electronic communications networks (ECNs)
Potential loss
Net change
Stock
24. A corporation's first offer to sell stock to the public
IPO [Initial Public Offering]
bid v. ask
Ticker
rights offer
25. Financing for new - often high-risk ventures
Net change
Fund manager
bid v. ask
venture capital VC
26. Underwriter doesn't guarantee any particular amount of money to the issuer
best efforts underwriting
unseasoned equity offering
Stock
AMEX
27. That part of the earnings of a corporation that is distributed to its shareholders
Discount broker
Dividend
Limit order
P / E
28. Bid- price dealer is willing to pay - ask- price dealer will sell at
Fund manager
Market order
bid v. ask
Penny stock
29. A corporation's first offer to sell stock to the public
IPO [Initial Public Offering]
Stock broker
firm commitment underwriting
No-load
30. The market in which securities that are not listed on exchanges are traded
Blue chip stock
syndicate
bid v. ask
OTC [Over-the-counter]
31. Also known as secondary and follow-on offering
seasoned equity offering (SEO)
firm commitment underwriting
electronic communications networks (ECNs)
Market order
32. A group of underwriters formed to share the risk and to help sell an issue
syndicate
Portfolio
third market v. fourth market
P / E
33. A stock selling for less that $1/share; usually high risk
third market v. fourth market
Bear market
Penny stock
Market order
34. New York Stock Exchange
NYSE
P / E
No-load
venture capital VC
35. Bid- price dealer is willing to pay - ask- price dealer will sell at
bid v. ask
unseasoned equity offering
Mutual fund
Bond
36. Fund that pools the savings of many individuals and invests this money in a variety of stocks - bonds - and other financial assets
AMEX
over-the counter market
Market order
Mutual fund
37. Stock whose holders are guaranteed priority in the payment of dividends but whose holders have no voting rights
stop-sell v. stop-buy
Bull market
Preferred Stock
bid v. ask
38. The person(s) resposible for implementing a fund's investing strategy and managing its portfolio trading activities
AMEX
NASDAQ
Net change
Fund manager
39. A market characterized by falling prices for securities
Bear market
Fund manager
Bull market
bid v. ask
40. Securities initially offered only to existing owners
syndicate
rights offer
Ticker
red herring
41. 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
Bear market
third market v. fourth market
NASDAQ
Market order
42. A certificate of debt (usually interest-bearing or discounted) that is issued by a government or corporation in order to raise money
Bond
Common stock
firm commitment underwriting
Mutual fund
43. New York Stock Exchange
third market v. fourth market
over-the counter market
NYSE
NYSE v. NASDAQ
44. The system that prints or dsplays last sale prices and the volume of securities transactions on exchanges on a moving tape
Net change
Market order
Ticker
OTC [Over-the-counter]
45. 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.
unseasoned equity offering
venture capital VC
NYSE minimum requirements
Bond
46. Price/earnings
Blue chip stock
three ways of the secondary market
Stock
P / E
47. Stock from nationally recognized companies which dominate the industry often having annual revenue of one billion or more
private equity
AMEX
Blue chip stock
Bull market
48. American Stock Exchange
general cash offer
AMEX
Ticker
Limit order
49. A list of the financial assets held by an individual or a bank or other financial institution
OTC [Over-the-counter]
Portfolio
dealer v. broker
Stock broker
50. A measure of stock market prices based on thirty leading companies of the new york stock exchange and nasdaq
Appreciation
Stop order
Dow Jones idustrial average
rights offer