Using the article, The Basics for Investing in Stocks to answer the questions in the Word doc listed below.
The Basics for Investing in Stocks
- Define the term Value Stocks.
- What is a prime example of a cyclical stock?
- An income stock is identifiable by ___________________________________.
- Growth stocks have good prospects for ____________________________________.
- If a stock sells for $ 100 a share and the company earned $ 20 per share, what is the Price-Earnings Ratio? _______________________________Show your work
- A steady return on equity of more than _________ may be a sign of a company that knows how to manage itself.
- Consider companies that have debts amounting to no more than about ________ of shareholders’ equity.
- Define the term beta.
- Purchasing stock using the Dollar Averaging method requires you to invest the______________________________________
- Define the acronym DRIP
- Explain how failing to diversify can be an investing mistake.
- Give an example of a Defensive Stock.____________________________
- What is a good target price to establish?
- What are penny stocks?
