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Test your basic knowledge |
Stock Market Basics
Start Test
Study First
Subjects
:
industries
,
business-skills
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
Potential loss
NYSE Hybrid Market
Stock broker
NASDAQ
2. A computerized data system to provide brokers with price quotations for securities traded over the counter
Penny stock
NASDAQ
red herring
Bond
3. An order to a broker to sell or buy stocks or commodities at the prevailing market price
Stock broker
stop-limit order
Market order
Bull market
4. Financing for new - often high-risk ventures
No-load
venture capital VC
general cash offer
firm commitment underwriting
5. Another name for IPO - b/c shares are not available to the public before the IPO
private equity
Net change
P / E
unseasoned equity offering
6. Fund that pools the savings of many individuals and invests this money in a variety of stocks - bonds - and other financial assets
dutch auction underwriting
Mutual fund
stop-limit order
Securities
7. When issuer sells the entire issue to the underwriters
Bull market
firm commitment underwriting
Discount broker
Fund manager
8. A list of the financial assets held by an individual or a bank or other financial institution
Potential loss
electronic communications networks (ECNs)
Portfolio
Limit order
9. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory
stop-limit order
NYSE minimum requirements
three ways of the secondary market
third market v. fourth market
10. A stock selling for less that $1/share; usually high risk
dutch auction underwriting
Penny stock
Dividend
No-load
11. An order to a broker to sell or buy stocks or commodities at the prevailing market price
three ways of the secondary market
Market order
IPO [Initial Public Offering]
prospectus
12. Securities market where dealers buy and sell securities for their own inventories; NASDAQ is one example
over-the counter market
electronic communications networks (ECNs)
NYSE minimum requirements
Appreciation
13. New York Stock Exchange
OTC [Over-the-counter]
Appreciation
unseasoned equity offering
NYSE
14. A group of underwriters formed to share the risk and to help sell an issue
Mutual fund
syndicate
Market order
Bull market
15. Bid- price dealer is willing to pay - ask- price dealer will sell at
Discount broker
firm commitment underwriting
bid v. ask
stop-limit order
16. Underwriter doesn't guarantee any particular amount of money to the issuer
best efforts underwriting
Dividend
Securities
Limit order
17. Mutual fund in which shares are sold without a commission or sales charge
best efforts underwriting
red herring
NYSE v. NASDAQ
No-load
18. When issuer sells the entire issue to the underwriters
firm commitment underwriting
Mutual fund
Ticker
IPO [Initial Public Offering]
19. American Stock Exchange
AMEX
Potential loss
NASDAQ
NYSE v. NASDAQ
20. Stop order is where the customer specifies a stop price in which once it's reached - it is converted into a market order
general cash offer
unseasoned equity offering
limit v. stop orders
Potential loss
21. Financing for new - often high-risk ventures
Stock split
venture capital VC
Securities
Dividend
22. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory
Common stock
three ways of the secondary market
Dow Jones idustrial average
Preferred Stock
23. An order to a broker to sell (buy) when the price of a security falls (rises) to a designated level
Discount broker
Market order
AMEX
Stop order
24. A market characterized by rising prices for securities
three ways of the secondary market
stop-limit order
Bull market
Portfolio
25. An increase in price or value of a stock
Ticker
firm commitment underwriting
Appreciation
Dividend
26. Difference between closing price of previous day and current day
NYSE
Net change
OTC [Over-the-counter]
prospectus
27. 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.
Limit order
NYSE minimum requirements
Preferred Stock
Potential loss
28. Mutual fund in which shares are sold without a commission or sales charge
Bear market
general cash offer
NYSE Hybrid Market
No-load
29. A preliminary prospectus among investor to generate interest in the stock offering
Market order
red herring
Dividend
three ways of the secondary market
30. Difference between closing price of previous day and current day
private equity
bid v. ask
Net change
limit v. stop orders
31. 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.
No-load
rights offer
NYSE minimum requirements
Bull market
32. Amount that you invest in securities
Potential loss
NYSE v. NASDAQ
Ticker
Securities
33. The market in which securities that are not listed on exchanges are traded
Stock broker
bid v. ask
NASDAQ
OTC [Over-the-counter]
34. 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
Penny stock
private equity
third market v. fourth market
Securities
35. A corporation's first offer to sell stock to the public
Net change
IPO [Initial Public Offering]
Penny stock
dutch auction underwriting
36. A corporation's first offer to sell stock to the public
electronic communications networks (ECNs)
private equity
AMEX
IPO [Initial Public Offering]
37. Buys & sells for clients at a reduced commission. They offer little or no investment advice.
NYSE Hybrid Market
seasoned equity offering (SEO)
firm commitment underwriting
Discount broker
38. Stock whose holders are guaranteed priority in the payment of dividends but whose holders have no voting rights
Dow Jones idustrial average
Blue chip stock
unseasoned equity offering
Preferred Stock
39. A measure of stock market prices based on thirty leading companies of the new york stock exchange and nasdaq
red herring
Penny stock
Bear market
Dow Jones idustrial average
40. 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
NYSE Hybrid Market
Bond
firm commitment underwriting
third market v. fourth market
41. 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
Securities
venture capital VC
stop-sell v. stop-buy
Preferred Stock
42. Price/earnings
P / E
dealer v. broker
NYSE Hybrid Market
best efforts underwriting
43. A person who buys or sells stocks for another in exchange for a commission
NASDAQ
Stock broker
Stop order
Securities
44. Equity financing for nonpublic companies
NYSE Hybrid Market
Dow Jones idustrial average
P / E
private equity
45. Fund that pools the savings of many individuals and invests this money in a variety of stocks - bonds - and other financial assets
Mutual fund
AMEX
Bear market
dutch auction underwriting
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)
Dividend
red herring
NYSE minimum requirements
Stock split
47. The system that prints or dsplays last sale prices and the volume of securities transactions on exchanges on a moving tape
unseasoned equity offering
AMEX
Ticker
Limit order
48. The most basic form of ownership - including voting rights on major issues - in a company
Common stock
Market order
general cash offer
AMEX
49. Stock whose holders are guaranteed priority in the payment of dividends but whose holders have no voting rights
Preferred Stock
over-the counter market
rights offer
three ways of the secondary market
50. Dealer- has inventory like car dealer - broker- brings buyers and sellers together (like real estate broker)
Preferred Stock
stop-limit order
rights offer
dealer v. broker