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1.
Growth stocks come from companies whose earnings are expected to _______.
Grow faster than the market average. The stock of companies with high earnings are valued highly in the marketplace, and thus grow greatly in value.
2.
Which of the following weathers market downturns best, on average?
Long-term investments. The longer you invest, the more likely you will be able to weather market downturns.
3.
Dividends are _______.
Shared company profits. Dividends are investors cuts of company profits.
4.
Which of the following is not generally a goal of long-term investing?
Current income. Receiving current income is not generally a goal of long-term investing. Long-term investors understand that they will have to put off income for months or years.
5.
A disadvantage of many long-term investments is that they are not liquid.
True. There is a risk of loss for many long-term investments if they are liquidated.