Stocks Beginner: Introduction to Stocks

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1.
A customer who wants nothing more than execution of trades from his or her broker will want a _______ broker.
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Deep-discount. The deep-discount broker limits his or her services to execution of trades.
2.
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.
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.
The best way to make a lot of money quickly is to buy and sell blue chip stocks.
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False. Blue chip stocks have low volatility, so any growth in value is likely to be slow.