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






2. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






3. When issuer sells the entire issue to the underwriters






4. Financing for new - often high-risk ventures






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






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






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






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






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






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






11. Amount that you invest in securities






12. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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)






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






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






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






17. Amount that you invest in securities






18. Fund that pools the savings of many individuals and invests this money in a variety of stocks - bonds - and other financial assets






19. Stock from nationally recognized companies which dominate the industry often having annual revenue of one billion or more






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






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






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






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






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






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






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






27. When issuer sells the entire issue to the underwriters






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






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






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






31. An increase in price or value of a stock






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






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






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






35. A person who buys or sells stocks for another in exchange for a commission






36. Also known as secondary and follow-on offering






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






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






39. Financing for new - often high-risk ventures






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






41. Buying a stock at a price you set






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






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






44. 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






45. 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






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






47. An order to a broker to sell or buy stocks or commodities at the prevailing market price






48. New York Stock Exchange






49. American Stock Exchange






50. 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