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






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






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






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 corporation's first offer to sell stock to the public






6. American Stock Exchange






7. 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.






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






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






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 market characterized by rising prices for securities






12. A market characterized by falling prices for securities






13. 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)






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






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






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






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






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






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






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






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






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






23. American Stock Exchange






24. Buying a stock at a price you set






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






26. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






28. A market characterized by rising prices for securities






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






30. New York Stock Exchange






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






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






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






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






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






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






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






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






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






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






41. Buying a stock at a price you set






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






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






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






45. When issuer sells the entire issue to the underwriters






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






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






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






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






50. Financing for new - often high-risk ventures