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1.
Which of the following stocks is so called because it has been repurchased by the issuing company?
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Treasury. The company returns this stock to its treasury.
2.
Blue chip stocks are not likely to be _______.
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Volatile. Blue chip stocks are established and in demand.
3.
Growth stocks are ________ to appreciate in price.
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Expected. Since future performance is not guaranteed, growth status is determined by investor expectations. The investors use past performance as a guide.
4.
A value stock is a stock that ________.
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Is currently valued for less than it is really worth. In the case of value stocks, market prices do not reflect the earnings and growth potential of the issuing company.
5.
The stock of which of the following companies probably does not qualify as income stock?
Choose wisely. There is only one correct answer.
An Internet company. Internet companies are too new for their stocks to qualify as income stock.