Stocks Beginner:
Small, Mid, and Large-Cap Stocks
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Choose wisely. There is only one correct answer to each question.
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1.
Large-cap stocks are stocks with _______.
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High fees
Large market values
Caps on growth
Large market values. "Cap" means capitalization. Large-cap stocks are stocks with large market values.
2.
Small-cap companies do not pay dividends because they usually dont earn profits.
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True
False
False. Small-cap companies may forgo paying dividends to reinvest those dividends for future company growth.
3.
What is capitalization?
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The number of stock shares owned by the public
The market value of a company
The price per share of a company
The dividend paid on a share of stock
The market value of a company. You can calculate it by multiplying the market price per share by the number of shares owned by the public.
4.
________ is a characteristic of small-cap stocks.
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Price volatility
Low earnings
Slow growth
Price volatility. Because small-cap companies may behave unpredictably, their stocks may, too.
5.
Mid-cap stocks _______.
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Pay the highest dividends of any size stock
Represent medium-sized companies
Are the safest of all stocks
Represent medium-sized companies. They are not necessarily the safest, and they usually do not pay the highest dividends of any stock.
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