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. 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






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






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






4. Financing for new - often high-risk ventures






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






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






7. Equity financing for nonpublic companies






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






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






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






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






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






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






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






15. Buying a stock at a price you set






16. American Stock Exchange






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






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






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






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






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






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






23. A market characterized by rising prices for securities






24. Equity financing for nonpublic companies






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






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






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






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






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






30. Securities initially offered only to existing owners






31. Also known as secondary and follow-on offering






32. 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.






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






34. Buying a stock at a price you set






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






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






37. Financing for new - often high-risk ventures






38. An increase in price or value of a stock






39. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






41. 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






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






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






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






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






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






47. When issuer sells the entire issue to the underwriters






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






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