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.
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.
3.
Income stocks would be most popular with _______.
Choose wisely. There is only one correct answer.
Someone who wanted to meet current living expenses. The other two individuals would most likely choose a growth investment to meet their needs.
4.
A value stock is a stock that ________.
Choose wisely. There is only one correct answer.
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.
5.
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.