ECONOMICS
SAVING AND INVESTING
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Growth Stock
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Blue Chip Stock
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Common Stock
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Income Stock
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Detailed explanation-1: -A growth stock is any share in a company that is anticipated to grow at a rate significantly above the average growth for the market. These stocks generally do not pay dividends.
Detailed explanation-2: -The U.S. stock market has long been considered the source of the greatest returns for investors, outperforming all other types of investments including financial securities, real estate, commodities, and art collectibles over the past century.
Detailed explanation-3: -Growth stocks are those companies that are considered to have the potential to outperform the overall market over time because of their future potential. Value stocks are classified as companies that are currently trading below what they are really worth and will thus provide a superior return.
Detailed explanation-4: -value: What’s the difference? The main difference between growth and value stocks is that value stocks are companies investors think are undervalued by the market, and growth stocks are companies that investors think will deliver better-than-average returns.
Detailed explanation-5: -Growth stocks are defined as those with 5-year average sales growth above 15%. Value stocks are defined as those with a price-to-sales ratio below 1.