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1.
Issuers of income stock have all of the following characteristics except _______.
Rapid expansion. Growth does occur in such companies, but it is not rapid.
2.
A value stock is a stock that ________.
Is currently valued for less than it is really worth. In the case of value stocks, market prices do not reflect the earnings and growth potential of the issuing company.
3.
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.
4.
An investor who can withstand a stock whose value rises and falls with the economy may want to choose a _______ stock.
Cyclical. Cyclical stocks move up or down with the business cycle.
5.
What stock market indicator is made of blue chip stocks?
The Dow Jones Industrial Average. This average is made of 30 blue chip stocks.