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Strategy Intermediate: Investing for Income

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1.
Which of the following is most likely to determine whether a stock is income-oriented?
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A past history of dividend payments. This is more likely than any of the other choices to be true of an income-oriented stock.
2.
What does the income objective seek?
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Income for the present. Risk aversion is common among income investors, but their chief goal is the income.
3.
As an investor, you can receive income from your investments in all but which of the following ways?
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Increase in the value of an investment. Strictly speaking, it is only when funds are sent to you that you receive income.
4.
By liquidating _______ in a mutual fund, you can receive income from it.
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Shares. Bonds and taxes cannot be liquidated in mutual funds.
5.
Mutual funds that invest in bonds are income-oriented.
Choose wisely. There is only one correct answer.
True. Bonds are income-oriented; they are designed to produce periodic dividend payments.