Stocks Beginner: Types of Stock

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1.
What stock market indicator is made of blue chip stocks?
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The Dow Jones Industrial Average. This average is made of 30 blue chip stocks.
2.
Issuers of income stock have all of the following characteristics except _______.
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Rapid expansion. Growth does occur in such companies, but it is not rapid.
3.
Growth stocks pay little in the way of dividends because they earn very little income.
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False. The dividend scarcity is due to the practice of the issuing company reinvesting profits to finance future growth.
4.
An investor who can withstand a stock whose value rises and falls with the economy may want to choose a _______ stock.
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Cyclical. Cyclical stocks move up or down with the business cycle.
5.
Why would a value investor watch for changes in operations at a corporation?
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Changes in operations may drive up the company's stock price. The value investor looks for growth in a stock's price.