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






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






3. Buying a stock at a price you set






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






5. 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.






6. Price/earnings






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






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






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






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






11. A market characterized by falling prices for securities






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






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






14. 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






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






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






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






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






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






20. Also known as uniform price auction b/c all successful bidders pay the same price






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






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






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






24. Buying a stock at a price you set






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






26. New York Stock Exchange






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






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






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






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






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






32. Amount that you invest in securities






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






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






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






36. When issuer sells the entire issue to the underwriters






37. American Stock Exchange






38. American Stock Exchange






39. An increase in price or value of a stock






40. Amount that you invest in securities






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






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






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






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






45. New York Stock Exchange






46. 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)






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






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






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






50. Financing for new - often high-risk ventures