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Stock Market Basics

Instructions:
  • Answer 50 questions in 15 minutes.
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  • 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. Stock from nationally recognized companies which dominate the industry often having annual revenue of one billion or more






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






3. New York Stock Exchange






4. 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






5. 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






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






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






8. New York Stock Exchange






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






10. Buying a stock at a price you set






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






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






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






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






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






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






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






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






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






20. Also known as secondary and follow-on offering






21. 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.






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






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






24. American Stock Exchange






25. 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)






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






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






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






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






30. 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






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






32. Securities initially offered only to existing owners






33. Price/earnings






34. 1directly with other investors - indirectly through a broker who arranges transactions with others - directly with a dealer who buys and sells securities from inventory






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






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






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






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






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






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






41. A market characterized by falling prices for securities






42. A market characterized by rising prices for securities






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






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






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






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






47. 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






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






49. Securities initially offered only to existing owners






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







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