Basic Finance Termonology

Learn the basics of finance step by step. This quiz starts with the simplest ideas, what a security is, how debt and equity work, and the difference between stocks and bonds, before moving into exchanges, markets, and beginner investing terms. A perfect introduction for anyone starting their finance journey.

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Last updated: December 3, 2025

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First submitted	December 3, 2025
Times taken	298
Average score	48.4%
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Hint	Answer
A tradable financial asset that represents ownership or debt	Security
Money borrowed that must be repaid	Debt
Ownership in a company	Equity
An equity security representing ownership	Stock/Share
A debt security representing borrowing	Bond
One individual unit of stock	Stock/Share
A marketplace where securities are traded	Exchange
The largest traditional U.S. stock exchange	NYSE (New York Stock Exchange)
A major U.S. electronic stock exchange	NASDAQ
A collection of securities that can be tracked and serve as a benchmark	Index
Index of 30 major U.S. companies	Dow Jones
Index of 500 major U.S. companies	S&P 500
Total value of all shares of a company	Market Cap
A company's first time selling stock to the public	IPO
How easily an asset can be traded for cash	Liquidity
The percent return on an investment	Yield

Hint	Answer
Cash paid to equity owners/shareholders	Dividend
Money earned after expenses	Profit
The price at which you can buy a security	Ask
The price at which someone will buy from you	Bid
The difference between bid and ask prices	Spread
A pooled investment holding many securities	Fund
A fund traded on an exchange like a stock	ETF
A fund bought and sold only at end-of-day price	Mutual Fund
The cost of borrowing money	Interest
The amount borrowed or invested initially	Principal
A bank account that earns interest	Savings Account
A type of interest that builds on itself (the secret to wealth)	Compound Interest
A broad decline in the market (10%+)	Correction
A very large market decline (20%+)	Bear Market
A long period of rising stock prices	Bull Market