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Stocks Beginner:
Small, Mid, and Large-Cap Stocks
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1.
Baby blue chips are mid-cap stocks with good growth records.
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True
False
True. As such, they have a good chance of becoming blue chip stocks.
2.
What is capitalization?
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The number of stock shares owned by the public
The market value of a company
The price per share of a company
The dividend paid on a share of stock
The market value of a company. You can calculate it by multiplying the market price per share by the number of shares owned by the public.
3.
Large-cap stocks are more likely than small-cap or mid-cap stocks to pay dividends.
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True
False
True. This is partly because they have enough funds to finance future growth. Some of them, however, may have less room to grow.
4.
________ is a characteristic of small-cap stocks.
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Price volatility
Low earnings
Slow growth
Price volatility. Because small-cap companies may behave unpredictably, their stocks may, too.
5.
Why do growth and aggressive-growth mutual funds include small-cap stocks in their portfolios?
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Small-cap stocks pay high dividends.
The smaller the stock, the more a fund can include.
Small-cap stocks are growth-oriented.
Small-cap stocks are growth-oriented. As a result, they are very popular in growth-oriented mutual funds.
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