Stocks Beginner: Types of Stock

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!

Get a certificate for this quiz
Enter your name to generate a certificate that you can save or print immediately. Optionally, add your email address to have a copy of the certificate emailed to you.


Review your answers below to learn more.
1.
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.
2.
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.
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.
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.
5.
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.