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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. A market characterized by rising prices for securities






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






3. 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






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






5. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






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






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






9. A market characterized by falling prices for securities






10. A market characterized by falling prices for securities






11. Amount that you invest in securities






12. Also known as secondary and follow-on offering






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






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






15. Price/earnings






16. Also known as secondary and follow-on offering






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






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






19. 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






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






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






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






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






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






25. When issuer sells the entire issue to the underwriters






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






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






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






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






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






31. American Stock Exchange






32. Equity financing for nonpublic companies






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






35. A corporation's first offer to sell stock to the public






36. Buying a stock at a price you set






37. New York Stock Exchange






38. 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






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






40. Equity financing for nonpublic companies






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






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






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






44. Securities initially offered only to existing owners






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






46. 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






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






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






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






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







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