Stocks Beginner: Introduction to Stocks

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1.
Common stock is less predictable than preferred stock.
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True. Since preferred stock pays a fixed premium, it is more predictable than common stock.
2.
Buying highly volatile stocks may be _______.
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Either A or B. Buying highly volatile stocks may be the quickest way to make or to lose money on the market. Since volatile stocks have greater and/or more frequent fluctuations in value than the market as a whole, they can be the quickest way to either make OR lose money.
3.
Common stock and preferred stock both convey the same kind of equity rights.
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False. Owners of preferred stock have prior claim to the companys assets over owners of common stock.
4.
Corporate stock represents _______.
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Net assets. Stock represents a share of ownership in a companys assets.
5.
Which type of broker provides investment research and assistance with making investment decisions?
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Full-service. In return for higher commissions, the broker offers investment advice and research.