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






2. 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.






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






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






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






6. Buying a stock at a price you set






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






8. 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






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






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






11. 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






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






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






14. American Stock Exchange






15. When issuer sells the entire issue to the underwriters






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






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






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






19. American Stock Exchange






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






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






22. Also known as secondary and follow-on offering






23. Equity financing for nonpublic companies






24. Amount that you invest in securities






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






26. An increase in price or value of a stock






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






28. An increase in price or value of a stock






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






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






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






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






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






34. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






35. Financing for new - often high-risk ventures






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






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






38. A market characterized by falling prices for securities






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






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






41. Financing for new - often high-risk ventures






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






43. 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






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






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






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






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






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






49. Also known as uniform price auction b/c all successful bidders pay the same price






50. 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