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Stocks Beginner: Types of Stock

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1.
The stock of which of the following companies probably does not qualify as income stock?
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An Internet company. Internet companies are too new for their stocks to qualify as income stock.
2.
Why do growth stocks pay little by way of dividends?
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The issuing company reinvests profits to finance future growth. This is a common practice among rapidly growing companies.
3.
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.
4.
Blue chip stocks are not likely to be _______.
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Volatile. Blue chip stocks are established and in demand.
5.
Investors buy value stocks because they believe the stocks will always be inexpensive.
Choose wisely. There is only one correct answer.
False. Investors buy them because they believe the stocks will rise in value soon. Value investors profit from these increases in value.