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Stocks Intermediate:
Value Stocks
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1.
Which of the following is an example of a non-cyclical industry?
Choose wisely. There is only one correct answer.
Automobiles
Paper
Health care
Machinery
Health care. This industry tends to react less to economic changes than many cyclical industries do.
2.
Which of the following is the least likely internal factor to trigger a rise in the price of a value stock?
Choose wisely. There is only one correct answer.
A new president restructures the executive management team.
Production employees strike for higher wages.
The board of directors announces the sale of an unprofitable subsidiary.
The company announces a new plant opening.
Production employees strike for higher wages. Unless this problem can be solved quickly, it may threaten the companys prospects for growth.
3.
You can often find value stocks during a bear market but seldom during a bull market.
Choose wisely. There is only one correct answer.
True
False
False. You can find value stocks during either a bear market or a bull market.
4.
Value investors aim to buy several months after a turnaround in a stocks performance.
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True
False
False. Value investors aim to buy right before an expected turnaround in a value stocks performance.
5.
A stock issued by a company with a large debt load is likely to be a value stock.
Choose wisely. There is only one correct answer.
True
False
False. A stock issued by a company with a large debt load may lack the resources to increase future earnings.
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