Stocks Beginner: Types of Stock

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1.
Blue chip stocks are not likely to be _______.
Choose wisely. There is only one correct answer.
Volatile. Blue chip stocks are established and in demand.
2.
Why would a value investor watch for changes in operations at a corporation?
Choose wisely. There is only one correct answer.
Changes in operations may drive up the company's stock price. The value investor looks for growth in a stock's price.
3.
Why do growth stocks pay little by way of dividends?
Choose wisely. There is only one correct answer.
The issuing company reinvests profits to finance future growth. This is a common practice among rapidly growing companies.
4.
Which of the following stocks is so called because it has been repurchased by the issuing company?
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Treasury. The company returns this stock to its treasury.
5.
The stock of which of the following companies probably does not qualify as income stock?
Choose wisely. There is only one correct answer.
An Internet company. Internet companies are too new for their stocks to qualify as income stock.