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. 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. Financing for new - often high-risk ventures






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






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






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






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






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






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






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






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






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






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






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






14. 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






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






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






17. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






19. Also known as secondary and follow-on offering






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






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






22. Financing for new - often high-risk ventures






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






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






25. Buying a stock at a price you set






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






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






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






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






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






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






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






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






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






35. A market characterized by falling prices for securities






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






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






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






39. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






40. New York Stock Exchange






41. 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






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






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






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






45. A market characterized by rising prices for securities






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






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






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






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