Stocks Beginner: Types of Stock

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1.
Issuers of income stock have all of the following characteristics except _______.
Choose wisely. There is only one correct answer.
Rapid expansion. Growth does occur in such companies, but it is not rapid.
2.
Which of the following stocks is so called because it has been repurchased by the issuing company?
Choose wisely. There is only one correct answer.
Treasury. The company returns this stock to its treasury.
3.
Growth stocks are ________ to appreciate in price.
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Expected. Since future performance is not guaranteed, growth status is determined by investor expectations. The investors use past performance as a guide.
4.
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.
5.
Investors buy value stocks because they believe the stocks will always be inexpensive.
Choose wisely. There is only one correct answer.
False. Investors buy them because they believe the stocks will rise in value soon. Value investors profit from these increases in value.