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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. Stock whose holders are guaranteed priority in the payment of dividends but whose holders have no voting rights
Preferred Stock
NYSE minimum requirements
prospectus
Appreciation
2. American Stock Exchange
Ticker
syndicate
AMEX
dutch auction underwriting
3. A person who buys or sells stocks for another in exchange for a commission
Fund manager
stop-sell v. stop-buy
Stock broker
dutch auction underwriting
4. The most basic form of ownership - including voting rights on major issues - in a company
Penny stock
Dividend
NYSE
Common stock
5. Buys & sells for clients at a reduced commission. They offer little or no investment advice.
Common stock
Bull market
Discount broker
IPO [Initial Public Offering]
6. Dealer- has inventory like car dealer - broker- brings buyers and sellers together (like real estate broker)
NYSE
dealer v. broker
stop-limit order
unseasoned equity offering
7. An increase in price or value of a stock
electronic communications networks (ECNs)
Penny stock
Appreciation
Net change
8. Securities or SEO offered to the public on a first-come first serve basis
Dow Jones idustrial average
general cash offer
Bull market
Discount broker
9. An increase in price or value of a stock
Appreciation
Mutual fund
P / E
Stock split
10. 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)
unseasoned equity offering
Stock split
NYSE
Dividend
11. Price/earnings
stop-sell v. stop-buy
Market order
P / E
OTC [Over-the-counter]
12. A stock selling for less that $1/share; usually high risk
Penny stock
Common stock
NYSE v. NASDAQ
AMEX
13. Another name for IPO - b/c shares are not available to the public before the IPO
Dow Jones idustrial average
Bond
unseasoned equity offering
dutch auction underwriting
14. A certificate documenting the shareholder's ownership in the corporation. There is no guarantee of making money with a stock.
prospectus
unseasoned equity offering
NYSE Hybrid Market
Stock
15. Equity financing for nonpublic companies
private equity
Stock
Discount broker
Penny stock
16. Securities market where dealers buy and sell securities for their own inventories; NASDAQ is one example
red herring
bid v. ask
over-the counter market
Ticker
17. When issuer sells the entire issue to the underwriters
dutch auction underwriting
NYSE v. NASDAQ
firm commitment underwriting
Net change
18. A list of the financial assets held by an individual or a bank or other financial institution
Dividend
Portfolio
Appreciation
Stock broker
19. A stock selling for less that $1/share; usually high risk
firm commitment underwriting
Penny stock
NYSE v. NASDAQ
P / E
20. Securities initially offered only to existing owners
Portfolio
unseasoned equity offering
rights offer
firm commitment underwriting
21. Stop order is where the customer specifies a stop price in which once it's reached - it is converted into a market order
limit v. stop orders
Ticker
IPO [Initial Public Offering]
Dow Jones idustrial average
22. A group of underwriters formed to share the risk and to help sell an issue
syndicate
over-the counter market
dutch auction underwriting
NASDAQ
23. 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.
Ticker
three ways of the secondary market
NYSE minimum requirements
Blue chip stock
24. Financing for new - often high-risk ventures
Discount broker
venture capital VC
Ticker
electronic communications networks (ECNs)
25. A computerized data system to provide brokers with price quotations for securities traded over the counter
NASDAQ
Discount broker
Dividend
electronic communications networks (ECNs)
26. Another name for IPO - b/c shares are not available to the public before the IPO
unseasoned equity offering
Stock split
firm commitment underwriting
syndicate
27. Stock whose holders are guaranteed priority in the payment of dividends but whose holders have no voting rights
Net change
Bond
stop-limit order
Preferred Stock
28. Mutual fund in which shares are sold without a commission or sales charge
Preferred Stock
third market v. fourth market
No-load
NYSE v. NASDAQ
29. A person who buys or sells stocks for another in exchange for a commission
Stock broker
Net change
Blue chip stock
Potential loss
30. Securities or SEO offered to the public on a first-come first serve basis
Securities
Bear market
general cash offer
Stop order
31. Also known as uniform price auction b/c all successful bidders pay the same price
dutch auction underwriting
Stop order
Limit order
unseasoned equity offering
32. Amount that you invest in securities
best efforts underwriting
Potential loss
unseasoned equity offering
private equity
33. A market characterized by falling prices for securities
Fund manager
Bear market
NYSE Hybrid Market
Blue chip stock
34. Difference between closing price of previous day and current day
Penny stock
Bear market
Net change
Stock
35. Financing for new - often high-risk ventures
Discount broker
Net change
venture capital VC
red herring
36. New York Stock Exchange
P / E
NYSE
over-the counter market
Preferred Stock
37. A computerized data system to provide brokers with price quotations for securities traded over the counter
red herring
Fund manager
NASDAQ
firm commitment underwriting
38. Equity financing for nonpublic companies
third market v. fourth market
private equity
P / E
bid v. ask
39. A corporation's first offer to sell stock to the public
bid v. ask
Blue chip stock
P / E
IPO [Initial Public Offering]
40. 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
Common stock
Blue chip stock
Potential loss
stop-sell v. stop-buy
41. Fund that pools the savings of many individuals and invests this money in a variety of stocks - bonds - and other financial assets
Mutual fund
Preferred Stock
Discount broker
red herring
42. The most basic form of ownership - including voting rights on major issues - in a company
Common stock
Stock split
Dow Jones idustrial average
Bond
43. American Stock Exchange
AMEX
Market order
NYSE Hybrid Market
over-the counter market
44. A certificate of debt (usually interest-bearing or discounted) that is issued by a government or corporation in order to raise money
Bond
Net change
No-load
Market order
45. Bid- price dealer is willing to pay - ask- price dealer will sell at
limit v. stop orders
bid v. ask
IPO [Initial Public Offering]
Stock broker
46. Amount that you invest in securities
unseasoned equity offering
Stock split
Net change
Potential loss
47. 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)
Common stock
Stock split
Net change
Stock broker
48. When issuer sells the entire issue to the underwriters
Preferred Stock
Stock
Potential loss
firm commitment underwriting
49. Underwriter doesn't guarantee any particular amount of money to the issuer
best efforts underwriting
AMEX
electronic communications networks (ECNs)
syndicate
50. Once the stock price reaches the preset stop price the order is converted ito a limit order
Blue chip stock
Stock split
stop-limit order
Securities