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






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






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






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






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






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






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






8. Equity financing for nonpublic companies






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






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






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






12. A market characterized by rising prices for securities






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






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






16. Price/earnings






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






18. Securities initially offered only to existing owners






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






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






21. An increase in price or value of a stock






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






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






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






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






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






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






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






29. American Stock Exchange






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






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






32. 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






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






34. A market characterized by rising prices for securities






35. Buying a stock at a price you set






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






37. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






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






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






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






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






43. Amount that you invest in securities






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






45. An increase in price or value of a stock






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






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






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






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






50. American Stock Exchange







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