Stocks Beginner: Types of Stock

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1.
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.
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.
What stock market indicator is made of blue chip stocks?
Choose wisely. There is only one correct answer.
The Dow Jones Industrial Average. This average is made of 30 blue chip stocks.
4.
Which of the following stocks performs well during a market downturn?
Choose wisely. There is only one correct answer.
Defensive. During downturns, some companies do well because their services are needed at all phases of the business cycle.
5.
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.