Stocks Beginner: Growth Stocks

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1.
Growth stocks carry less risk for the investor than the stocks of companies on average.
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False. Growth stocks carry more risk for the investor than the stocks of companies on average.
2.
Growth stocks are least likely to help investors reach the following goal:
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Provide current income. Growth stocks are especially suited to investors who can forgo current income.
3.
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.
4.
A big disadvantage of growth stocks is their inability to guarantee your principal.
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True. A big disadvantage of growth stocks is a greater risk of loss of principal.
5.
On average, an economic downturn affects a growth stock more than it affects the stock of other companies.
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False. An economic downturn affects a growth stock less than the stock of other companies.