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Stocks Beginner: Types of Stock

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1.
Blue chip stocks are not likely to be _______.
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Volatile. Blue chip stocks are established and in demand.
2.
Growth stocks pay little in the way of dividends because they earn very little income.
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False. The dividend scarcity is due to the practice of the issuing company reinvesting profits to finance future growth.
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.
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.
Income stocks would be most popular with _______.
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Someone who wanted to meet current living expenses. The other two individuals would most likely choose a growth investment to meet their needs.