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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. 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.






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






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






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






5. 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






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






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






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






9. Equity financing for nonpublic companies






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






11. Difference between closing price of previous day and current day






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






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






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






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






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






17. A market characterized by rising prices for securities






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






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






20. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






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






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






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






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






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






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






28. Buying a stock at a price you set






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






30. Amount that you invest in securities






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






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






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






34. A market characterized by rising prices for securities






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






36. Price/earnings






37. A market characterized by falling prices for securities






38. 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)






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






40. 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.






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






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






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






44. Also known as secondary and follow-on offering






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






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






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






48. An increase in price or value of a stock






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






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