Financial Instruments and Securities Trading Quiz Test your understanding of debt instruments, preferred stock, options, short selling, bid-ask spread, stock exchanges, liquidity, derivatives, arbitrage, clearinghouses, and more.
#1
#2
Voting rights
Fixed dividend payments
Priority in bankruptcy
Convertible to common stock
#3
To provide loans to businesses
To facilitate the buying and selling of securities
To regulate the financial markets
To provide insurance for investors
#4
A contract granting the holder the right to buy or sell an asset at a specified price by a certain date
An ownership stake in a company
A type of fixed-income security
A type of mutual fund
#5
Buying a security with the intention of selling it within a short period
Selling a security borrowed from a broker with the hope of buying it back at a lower price
Exercising an option before its expiration date
Trading securities on margin
#6
Common stock
Corporate bond
Futures contract
Treasury bill
#7
The difference between the highest and lowest prices a security has traded at during a specific period
The difference between the price a buyer is willing to pay and the price a seller is willing to accept
The total value of outstanding shares of a company
The price at which an investor can sell a security immediately
#8
To facilitate communication between buyers and sellers
To execute trades on behalf of investors
To ensure the settlement of trades and manage counterparty risk
To provide investment advice to individual investors
#9
To facilitate the trading of securities on the stock exchange.
To provide investment advice to individual investors.
To assign credit ratings to issuers of debt securities.
To issue government bonds.
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