Stocks Beginner: Types of Stock

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1.
An investor who can withstand a stock whose value rises and falls with the economy may want to choose a _______ stock.
Choose wisely. There is only one correct answer.
Cyclical. Cyclical stocks move up or down with the business cycle.
2.
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.
3.
Growth stocks are ________ to appreciate in price.
Choose wisely. There is only one correct answer.
Expected. Since future performance is not guaranteed, growth status is determined by investor expectations. The investors use past performance as a guide.
4.
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.
5.
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.