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. American Stock Exchange






2. A market characterized by falling prices for securities






3. 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






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






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






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






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






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






9. 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






10. 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






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






12. Amount that you invest in securities






13. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






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






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






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






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






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






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






21. Equity financing for nonpublic companies






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






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






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






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






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






27. A market characterized by rising prices for securities






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






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






30. Securities initially offered only to existing owners






31. Financing for new - often high-risk ventures






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






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






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






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






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






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






38. A market characterized by rising prices for securities






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






40. A market characterized by falling prices for securities






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






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






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






44. 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)






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






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






47. Price/earnings






48. When issuer sells the entire issue to the underwriters






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






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