Home > Stocks > Beginner
Stocks Beginner: Types of Stock

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
Growth stocks pay little in the way of dividends because they earn very little income.
Choose wisely. There is only one correct answer.
False. The dividend scarcity is due to the practice of the issuing company reinvesting profits to finance future growth.
2.
Which of the following stocks performs well during a market downturn?
Choose wisely. There is only one correct answer.
Defensive. During downturns, some companies do well because their services are needed at all phases of the business cycle.
3.
What stock market indicator is made of blue chip stocks?
Choose wisely. There is only one correct answer.
The Dow Jones Industrial Average. This average is made of 30 blue chip stocks.
4.
Why would a value investor watch for changes in operations at a corporation?
Choose wisely. There is only one correct answer.
Changes in operations may drive up the company's stock price. The value investor looks for growth in a stock's price.
5.
Income stocks would be most popular with _______.
Choose wisely. There is only one correct answer.
Someone who wanted to meet current living expenses. The other two individuals would most likely choose a growth investment to meet their needs.