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.
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.
2.
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.
3.
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.
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.
The stock of which of the following companies probably does not qualify as income stock?
Choose wisely. There is only one correct answer.
An Internet company. Internet companies are too new for their stocks to qualify as income stock.