Stocks Beginner: Types of Stock

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1.
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.
2.
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.
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.
Growth stocks are ________ to appreciate in price.
Choose wisely. There is only one correct answer.
Expected. Since future performance is not guaranteed, growth status is determined by investor expectations. The investors use past performance as a guide.
5.
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.