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. An increase in price or value of a stock






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






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






4. 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.






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






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






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






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






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






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






11. Securities initially offered only to existing owners






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






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






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






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






16. Underwriter doesn't guarantee any particular amount of money to the issuer






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






18. 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






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






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






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






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






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






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






25. A market characterized by falling prices for securities






26. Securities initially offered only to existing owners






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






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






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






30. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






31. Buying a stock at a price you set






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






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






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






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






36. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






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






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






40. American Stock Exchange






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






42. 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






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






44. When issuer sells the entire issue to the underwriters






45. When issuer sells the entire issue to the underwriters






46. A market characterized by rising prices for securities






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






48. Equity financing for nonpublic companies






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






50. Financing for new - often high-risk ventures