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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. Mutual fund in which shares are sold without a commission or sales charge
unseasoned equity offering
No-load
dealer v. broker
stop-sell v. stop-buy
2. Stock from nationally recognized companies which dominate the industry often having annual revenue of one billion or more
Portfolio
general cash offer
Blue chip stock
Dow Jones idustrial average
3. Stock from nationally recognized companies which dominate the industry often having annual revenue of one billion or more
Blue chip stock
Discount broker
rights offer
Bear market
4. 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
NYSE Hybrid Market
Common stock
Stock
Discount broker
5. Fund that pools the savings of many individuals and invests this money in a variety of stocks - bonds - and other financial assets
bid v. ask
firm commitment underwriting
Appreciation
Mutual fund
6. Securities market where dealers buy and sell securities for their own inventories; NASDAQ is one example
over-the counter market
Dividend
Stop order
Mutual fund
7. A corporation's first offer to sell stock to the public
Bull market
IPO [Initial Public Offering]
syndicate
AMEX
8. An order to a broker to sell or buy stocks or commodities at the prevailing market price
Market order
stop-sell v. stop-buy
Blue chip stock
Stock split
9. A person who buys or sells stocks for another in exchange for a commission
Common stock
Dow Jones idustrial average
Blue chip stock
Stock broker
10. The system that prints or dsplays last sale prices and the volume of securities transactions on exchanges on a moving tape
Ticker
Appreciation
Stock broker
Stock split
11. American Stock Exchange
best efforts underwriting
AMEX
three ways of the secondary market
Dividend
12. Stock whose holders are guaranteed priority in the payment of dividends but whose holders have no voting rights
Stop order
Mutual fund
best efforts underwriting
Preferred Stock
13. A group of underwriters formed to share the risk and to help sell an issue
Stock
syndicate
NYSE Hybrid Market
stop-limit order
14. Also known as secondary and follow-on offering
general cash offer
Bull market
seasoned equity offering (SEO)
venture capital VC
15. Stock whose holders are guaranteed priority in the payment of dividends but whose holders have no voting rights
Dow Jones idustrial average
Bull market
Preferred Stock
Stock broker
16. A market characterized by falling prices for securities
AMEX
Bear market
Appreciation
No-load
17. A preliminary prospectus among investor to generate interest in the stock offering
NYSE minimum requirements
Portfolio
red herring
prospectus
18. A stock selling for less that $1/share; usually high risk
Ticker
Penny stock
Securities
red herring
19. Securities or SEO offered to the public on a first-come first serve basis
red herring
general cash offer
Discount broker
Portfolio
20. All of the investments - including stocks - bonds - mutual funds - options - and commodities - that are traded
Securities
Dividend
Penny stock
dutch auction underwriting
21. Dealer- has inventory like car dealer - broker- brings buyers and sellers together (like real estate broker)
Stop order
electronic communications networks (ECNs)
stop-limit order
dealer v. broker
22. The market in which securities that are not listed on exchanges are traded
OTC [Over-the-counter]
Dow Jones idustrial average
Limit order
No-load
23. All of the investments - including stocks - bonds - mutual funds - options - and commodities - that are traded
Securities
Stock split
Net change
three ways of the secondary market
24. Bid- price dealer is willing to pay - ask- price dealer will sell at
NYSE minimum requirements
Common stock
bid v. ask
Stop order
25. Once the stock price reaches the preset stop price the order is converted ito a limit order
Appreciation
Common stock
stop-limit order
best efforts underwriting
26. Fund that pools the savings of many individuals and invests this money in a variety of stocks - bonds - and other financial assets
NYSE v. NASDAQ
over-the counter market
Mutual fund
Stock
27. Underwriter doesn't guarantee any particular amount of money to the issuer
best efforts underwriting
Stop order
dutch auction underwriting
third market v. fourth market
28. Price/earnings
NYSE v. NASDAQ
P / E
venture capital VC
bid v. ask
29. 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
venture capital VC
Ticker
Stock broker
third market v. fourth market
30. A stock selling for less that $1/share; usually high risk
Penny stock
Stop order
prospectus
third market v. fourth market
31. NASDAQ is a computer network with no physical location and has a multiple market maker system rather than a specialist system
Dividend
private equity
NYSE v. NASDAQ
Potential loss
32. Equity financing for nonpublic companies
stop-sell v. stop-buy
private equity
Stock split
Fund manager
33. New York Stock Exchange
firm commitment underwriting
Common stock
NYSE
NASDAQ
34. NASDAQ was opened to his which is a website that allowed investors to trade directly with one another;
rights offer
NYSE minimum requirements
Discount broker
electronic communications networks (ECNs)
35. Also known as secondary and follow-on offering
seasoned equity offering (SEO)
Market order
AMEX
Stock split
36. A certificate of debt (usually interest-bearing or discounted) that is issued by a government or corporation in order to raise money
Stock
Bond
prospectus
Bull market
37. Underwriter doesn't guarantee any particular amount of money to the issuer
general cash offer
best efforts underwriting
P / E
stop-sell v. stop-buy
38. Dealer- has inventory like car dealer - broker- brings buyers and sellers together (like real estate broker)
Dow Jones idustrial average
dealer v. broker
IPO [Initial Public Offering]
P / E
39. A list of the financial assets held by an individual or a bank or other financial institution
Portfolio
limit v. stop orders
firm commitment underwriting
Limit order
40. Another name for IPO - b/c shares are not available to the public before the IPO
dealer v. broker
rights offer
unseasoned equity offering
Fund manager
41. Detailed acct of company's financial position - its operations - and its investment plans for the future which is submitted to SEC for approval
seasoned equity offering (SEO)
private equity
prospectus
private equity
42. Buys & sells for clients at a reduced commission. They offer little or no investment advice.
Portfolio
Discount broker
general cash offer
P / E
43. A measure of stock market prices based on thirty leading companies of the new york stock exchange and nasdaq
Dow Jones idustrial average
Securities
Stock split
NYSE Hybrid Market
44. A computerized data system to provide brokers with price quotations for securities traded over the counter
limit v. stop orders
prospectus
NASDAQ
Fund manager
45. Securities initially offered only to existing owners
rights offer
bid v. ask
Stock broker
dealer v. broker
46. An increase in price or value of a stock
NYSE Hybrid Market
Appreciation
AMEX
Market order
47. 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
NYSE Hybrid Market
bid v. ask
stop-limit order
third market v. fourth market
48. Bid- price dealer is willing to pay - ask- price dealer will sell at
over-the counter market
bid v. ask
best efforts underwriting
Bear market
49. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory
AMEX
venture capital VC
three ways of the secondary market
Stop order
50. 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
unseasoned equity offering
Bull market
No-load