Stocks Beginner: Growth Stocks

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1.
A stock with a price/earnings ratio of 47 is likely a growth stock.
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True. A stock with a P/E ratio of more than 20 is likely to be a growth stock.
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.
Which of the following is most likely to issue a growth stock?
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A company that has many untapped potential markets. Such a company has a high likelihood of continued growth.
4.
Young, start-up companies often issue growth stock.
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False. Companies that have established a record of increasing earnings issue growth stocks.
5.
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.