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.
Income stocks would be most popular with _______.
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Someone who wanted to meet current living expenses. The other two individuals would most likely choose a growth investment to meet their needs.
3.
Which of the following stocks performs well during a market downturn?
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Defensive. During downturns, some companies do well because their services are needed at all phases of the business cycle.
4.
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.
5.
Why do growth stocks pay little by way of dividends?
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The issuing company reinvests profits to finance future growth. This is a common practice among rapidly growing companies.