Strategy Intermediate: Value Investing

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1.
A value stock is issued by a company that _______.
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Has the resources to grow. A careful review reveals that it will likely grow in the future, even during economic downturns.
2.
Value investors identify variables that may push up the price of a value stock in the next two or three years.
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False. Value investors identify variables that may push up the price of a value stock in the near future.
3.
For value investors, which of the following would be the least helpful in evaluating a company?
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Quarterly sales. A value investor usually focuses on factors that reveal the fundamental capacity and potential of the company over the long term.
4.
A value stock is one that is undervalued in the marketplace.
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True. A value stock is worth more than its current market price indicates.
5.
A company's book value is _______.
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The value of its assets minus liabilites. Book value is the value of a company's assets.