Stocks Beginner: Growth Stocks

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1.
A big advantage of growth stocks is their ability to provide a regular income stream.
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False. Growth stocks provide little or no current income or dividends.
2.
You are most likely to find growth stock issued by companies in fields that have achieved stable or flat growth.
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False. You are most likely to find growth stock issued by companies in high-growth industries.
3.
Growth stock is issued by companies that ______.
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Demonstrate earnings growth potential. Growth stock is issued by companies that have reported higher-than-average earnings growth and expect to continue to demonstrate high profit growth.
4.
Growth stocks offer investors the prospect of _______.
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Large investment gains. Growth stocks offer investors the prospect of large stock price increases as company earnings grow.
5.
Growth stocks are most likely to benefit investors who _______.
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Desire a high rate of return. Growth stocks usually provide better-than-average returns over time.