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.
Which of the following statements is true?
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Bonds pay fixed income; common stock doesnt. Bonds pay a fixed interest rate; stock values and dividends depend on the performance of the company.
3.
Which of the following pays a fixed dividend?
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Preferred stock. Preferred stock pays a fixed dividend, as opposed to common stock, for which the dividend (if any) is set by the companys board of directors from time to time.
4.
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.
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.