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






2. 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






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






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






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






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






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






8. Securities initially offered only to existing owners






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






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






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






12. 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)






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






14. Also known as secondary and follow-on offering






15. Amount that you invest in securities






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






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






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






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






20. A market characterized by rising prices for securities






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






22. Also known as secondary and follow-on offering






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






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






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






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






27. Price/earnings






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






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






30. 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






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






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






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






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






35. Financing for new - often high-risk ventures






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






37. 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)






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






39. New York Stock Exchange






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






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






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






43. Equity financing for nonpublic companies






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






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






46. 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






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






48. When issuer sells the entire issue to the underwriters






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






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