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






2. A market characterized by rising prices for securities






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






4. 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)






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






6. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






7. Securities initially offered only to existing owners






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






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






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






11. When issuer sells the entire issue to the underwriters






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






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






14. Price/earnings






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






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






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






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






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






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






21. 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






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






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






24. When issuer sells the entire issue to the underwriters






25. Equity financing for nonpublic companies






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






27. Amount that you invest in securities






28. 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






29. An increase in price or value of a stock






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






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






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






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






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






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






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






38. Equity financing for nonpublic companies






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






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






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






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






43. An increase in price or value of a stock






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






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






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






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






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






49. Amount that you invest in securities






50. Financing for new - often high-risk ventures