Choose wisely. There is only one correct answer to each question.
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1.
Income stocks would be most popular with _______.
Someone who wanted to meet current living expenses. The other two individuals would most likely choose a growth investment to meet their needs.
2.
Which of the following stocks is so called because it has been repurchased by the issuing company?
Treasury. The company returns this stock to its treasury.
3.
A new company that habitually reinvests its dividends qualifies as a blue chip company.
False. Blue chip companies are both established and able to pay dividends consistently.
4.
Why would a value investor watch for changes in operations at a corporation?
Changes in operations may drive up the company's stock price. The value investor looks for growth in a stock's price.
5.
Growth stocks are ________ to appreciate in price.
Expected. Since future performance is not guaranteed, growth status is determined by investor expectations. The investors use past performance as a guide.