Stocks Beginner: Growth Stocks

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1.
A stock with a price/earnings ratio of 47 is likely a growth stock.
Choose wisely. There is only one correct answer.
True. A stock with a P/E ratio of more than 20 is likely to be a growth stock.
2.
Which of the following is most likely to issue a growth stock?
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A software manufacturer. Computer, software, and Internet companies generally offer higher potential for growth than do companies based on older manufacturing processes.
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.
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.
5.
You can defer taxes on your returns from growth stock for a long period.
Choose wisely. There is only one correct answer.
True. You can defer most of your taxable income until you sell the stock.