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1.
If the Zing! Internet stock has a capitalization of $100 million dollars, it is probably a _______ stock.
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Small-cap. By most models, this capitalization is quite small.
2.
Mid-cap stocks _______.
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Represent medium-sized companies. They are not necessarily the safest, and they usually do not pay the highest dividends of any stock.
3.
Large-cap stocks are more likely than small-cap or mid-cap stocks to pay dividends.
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True. This is partly because they have enough funds to finance future growth. Some of them, however, may have less room to grow.
4.
Small-cap companies do not pay dividends because they usually dont earn profits.
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False. Small-cap companies may forgo paying dividends to reinvest those dividends for future company growth.
5.
Baby blue chips are mid-cap stocks with good growth records.
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True. As such, they have a good chance of becoming blue chip stocks.