Stocks Beginner: Types of Stock

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1.
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.
2.
Growth stocks are ________ to appreciate in price.
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Expected. Since future performance is not guaranteed, growth status is determined by investor expectations. The investors use past performance as a guide.
3.
What stock market indicator is made of blue chip stocks?
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The Dow Jones Industrial Average. This average is made of 30 blue chip stocks.
4.
The stock of which of the following companies probably does not qualify as income stock?
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An Internet company. Internet companies are too new for their stocks to qualify as income stock.
5.
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.