SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
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. Equity financing for nonpublic companies
Appreciation
NYSE minimum requirements
private equity
NYSE v. NASDAQ
2. The system that prints or dsplays last sale prices and the volume of securities transactions on exchanges on a moving tape
Potential loss
bid v. ask
NYSE Hybrid Market
Ticker
3. A certificate of debt (usually interest-bearing or discounted) that is issued by a government or corporation in order to raise money
Market order
Ticker
Bond
Stock broker
4. Detailed acct of company's financial position - its operations - and its investment plans for the future which is submitted to SEC for approval
prospectus
Mutual fund
dutch auction underwriting
Bear market
5. Also known as uniform price auction b/c all successful bidders pay the same price
Portfolio
Bull market
dutch auction underwriting
general cash offer
6. A person who buys or sells stocks for another in exchange for a commission
NYSE
Stock broker
Potential loss
electronic communications networks (ECNs)
7. Dealer- has inventory like car dealer - broker- brings buyers and sellers together (like real estate broker)
best efforts underwriting
dealer v. broker
dutch auction underwriting
Dow Jones idustrial average
8. Bid- price dealer is willing to pay - ask- price dealer will sell at
bid v. ask
prospectus
limit v. stop orders
dealer v. broker
9. A person who buys or sells stocks for another in exchange for a commission
Stock broker
Dow Jones idustrial average
red herring
dutch auction underwriting
10. A market characterized by rising prices for securities
Limit order
general cash offer
Preferred Stock
Bull market
11. Once the stock price reaches the preset stop price the order is converted ito a limit order
stop-limit order
Stock broker
AMEX
Mutual fund
12. Buys & sells for clients at a reduced commission. They offer little or no investment advice.
Portfolio
Securities
Discount broker
firm commitment underwriting
13. Once the stock price reaches the preset stop price the order is converted ito a limit order
NYSE Hybrid Market
electronic communications networks (ECNs)
NYSE v. NASDAQ
stop-limit order
14. 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
dealer v. broker
syndicate
stop-sell v. stop-buy
Penny stock
15. A measure of stock market prices based on thirty leading companies of the new york stock exchange and nasdaq
third market v. fourth market
Dow Jones idustrial average
Appreciation
Penny stock
16. 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
syndicate
third market v. fourth market
Stop order
limit v. stop orders
17. Price/earnings
rights offer
over-the counter market
P / E
bid v. ask
18. Equity financing for nonpublic companies
private equity
Dividend
Limit order
NYSE minimum requirements
19. New York Stock Exchange
bid v. ask
NYSE
red herring
Preferred Stock
20. Securities or SEO offered to the public on a first-come first serve basis
Preferred Stock
dutch auction underwriting
general cash offer
IPO [Initial Public Offering]
21. A preliminary prospectus among investor to generate interest in the stock offering
dealer v. broker
Preferred Stock
red herring
Appreciation
22. 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.
Dividend
NYSE minimum requirements
over-the counter market
prospectus
23. 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
Stock split
Bull market
Penny stock
NYSE Hybrid Market
24. The person(s) resposible for implementing a fund's investing strategy and managing its portfolio trading activities
Securities
Bond
limit v. stop orders
Fund manager
25. A list of the financial assets held by an individual or a bank or other financial institution
stop-sell v. stop-buy
best efforts underwriting
private equity
Portfolio
26. Securities initially offered only to existing owners
rights offer
seasoned equity offering (SEO)
stop-sell v. stop-buy
dealer v. broker
27. Another name for IPO - b/c shares are not available to the public before the IPO
syndicate
Securities
unseasoned equity offering
Appreciation
28. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory
best efforts underwriting
Stock broker
NASDAQ
three ways of the secondary market
29. 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.
NYSE minimum requirements
Bull market
Net change
Mutual fund
30. Securities market where dealers buy and sell securities for their own inventories; NASDAQ is one example
OTC [Over-the-counter]
NYSE Hybrid Market
syndicate
over-the counter market
31. Bid- price dealer is willing to pay - ask- price dealer will sell at
Dow Jones idustrial average
syndicate
bid v. ask
AMEX
32. 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
dealer v. broker
NYSE Hybrid Market
P / E
private equity
33. Buying a stock at a price you set
Discount broker
Common stock
syndicate
Limit order
34. An increase in price or value of a stock
Ticker
AMEX
Appreciation
red herring
35. Amount that you invest in securities
electronic communications networks (ECNs)
Securities
Potential loss
unseasoned equity offering
36. 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)
venture capital VC
bid v. ask
rights offer
Stock split
37. The most basic form of ownership - including voting rights on major issues - in a company
best efforts underwriting
NYSE Hybrid Market
Fund manager
Common stock
38. NASDAQ was opened to his which is a website that allowed investors to trade directly with one another;
electronic communications networks (ECNs)
NYSE minimum requirements
dealer v. broker
bid v. ask
39. Amount that you invest in securities
over-the counter market
syndicate
Bull market
Potential loss
40. 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)
Bond
Stock split
Bear market
Discount broker
41. Mutual fund in which shares are sold without a commission or sales charge
Limit order
No-load
Market order
prospectus
42. The system that prints or dsplays last sale prices and the volume of securities transactions on exchanges on a moving tape
rights offer
Bond
Stop order
Ticker
43. Fund that pools the savings of many individuals and invests this money in a variety of stocks - bonds - and other financial assets
Mutual fund
Stop order
private equity
Market order
44. NASDAQ is a computer network with no physical location and has a multiple market maker system rather than a specialist system
Mutual fund
NYSE v. NASDAQ
Dividend
Securities
45. Dealer- has inventory like car dealer - broker- brings buyers and sellers together (like real estate broker)
electronic communications networks (ECNs)
dealer v. broker
stop-sell v. stop-buy
Dividend
46. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory
best efforts underwriting
Stock
Bull market
three ways of the secondary market
47. Difference between closing price of previous day and current day
third market v. fourth market
NASDAQ
Fund manager
Net change
48. The most basic form of ownership - including voting rights on major issues - in a company
Securities
Common stock
stop-sell v. stop-buy
NYSE minimum requirements
49. A computerized data system to provide brokers with price quotations for securities traded over the counter
Portfolio
red herring
electronic communications networks (ECNs)
NASDAQ
50. Buying a stock at a price you set
Market order
Limit order
bid v. ask
Blue chip stock