Stocks Intermediate:
Value Stocks
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1.
You can often find value stocks during a bear market but seldom during a bull market.
Choose wisely. There is only one correct answer.
True
False
False. You can find value stocks during either a bear market or a bull market.
2.
Investors are less likely to find value stocks in non-cyclical industries than in cyclical ones.
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True
False
True. Investors are less likely to find value stocks in stable industries that experience fewer highs and lows.
3.
Which of the following is the least likely internal factor to trigger a rise in the price of a value stock?
Choose wisely. There is only one correct answer.
A new president restructures the executive management team.
Production employees strike for higher wages.
The board of directors announces the sale of an unprofitable subsidiary.
The company announces a new plant opening.
Production employees strike for higher wages. Unless this problem can be solved quickly, it may threaten the companys prospects for growth.
4.
A value stock is one that is overpriced, given the companys earnings, debt load, price-to-book-value ratio, and future growth prospects.
Choose wisely. There is only one correct answer.
True
False
False. A value stock is underpriced, given the companys earnings, debt load, price-to-book-value ratio, and future growth prospects.
5.
Value investors aim to buy several months after a turnaround in a stocks performance.
Choose wisely. There is only one correct answer.
True
False
False. Value investors aim to buy right before an expected turnaround in a value stocks performance.
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