How are the 500 companies in the S&P 500 weighted?

By float adjusted market capitalization

By share price, the way the Dow does it

Equally, each at 0.2 percent of the index

Where does a market maker make most of its money?

Capturing the difference between the bid and the ask

Guessing which way the stock will move next

Commissions the exchange pays it per trade

Interest earned on customer cash balances

What does one share of common stock actually give you?

An ownership stake with a vote on some company matters

A claim on a fixed annual payment

A guaranteed return of your money on a set date

A loan to the company that is repaid with interest

What is the lockup period that follows an IPO?

A window when insiders are barred from selling their shares

The gap between pricing the deal and the first public trade

A stretch when the share price cannot move more than 10 percent

The time the broker holds your cash before settlement

How Wall Street Works quiz beginner

Stock Market Basics Quiz: 10 Questions

Test whether you understand what happens between your order and the exchange.

10 questions · about 5 minutes · instant explanations · nothing you answer leaves your browser

AI-assisted, reviewed and edited by Beth Ruelos. How we use AI

Sep 23, 2026 5 min read

About this quiz

Ten questions on how the US stock market really works, covering primary and secondary markets, spreads, T+1 settlement and index weighting. Each question comes with a short explanation of the right answer and a link to the guide that teaches it, so a wrong answer is a reading list rather than a dead end.

The quiz draws on the How Wall Street Works section. If you are new to the topic, start with the guides below, then come back and test yourself. Scores are calculated in your browser and are not stored or sent anywhere.

Frequently asked questions

Is this stock market quiz free?

Yes. Every quiz on What's On Wall Street is free, needs no account and no email address, and is scored in your browser so your answers never leave your device.

What score counts as passing?

Seven out of ten means you have the basics. Anything below six means it is worth reading the beginner guides in the How Wall Street Works section before you place real orders.

Where can I learn the topics I missed?

Each answer links to the guide that teaches that point, so you can read the two or three pages that cover your weak spots instead of starting again from the beginning.

About this quiz

Guides this quiz is based on

Frequently asked questions

More quizzes