Stocks Beginner: Introduction to Stocks

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1.
A _______ broker helps customers make decisions on investments.
Choose wisely. There is only one correct answer.
Full-service. The full-service broker includes investment assistance in his or her range of services.
2.
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.
3.
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.
4.
Corporate stock represents _______.
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Net assets. Stock represents a share of ownership in a companys assets.
5.
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.