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. 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






2. An increase in price or value of a stock






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






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






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






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






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






8. New York Stock Exchange






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






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






11. New York Stock Exchange






12. 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






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






14. A market characterized by rising prices for securities






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






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






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






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






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






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






21. Securities initially offered only to existing owners






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






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






24. A market characterized by rising prices for securities






25. 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






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






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






28. Also known as secondary and follow-on offering






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






30. Also known as secondary and follow-on offering






31. Financing for new - often high-risk ventures






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






33. American Stock Exchange






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






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






36. Buying a stock at a price you set






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






38. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






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






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






42. 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






43. 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)






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






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






46. Securities initially offered only to existing owners






47. American Stock Exchange






48. 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






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






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