302 Assignment 13
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BasicsforInvestinginStocksquestions.docxBTE 302
The Basics for Investing in Stocks
1. Define the term Value Stocks.
2. What is a prime example of a cyclical stock?
3. An income stock is identifiable by ___________________________________.
4. Growth stocks have good prospects for ____________________________________.
5. If a stock sells for $ 100 a share and the company earned $ 20 per share, what is the Price-Earnings Ratio? _______________________________Show your work
6. A steady return on equity of more than _________ may be a sign of a company that knows how to manage itself.
7. Consider companies that have debts amounting to no more than about ________ of shareholders’ equity.
8. Define the term beta.
9. Purchasing stock using the Dollar Averaging method requires you to invest the______________________________________
10. Define the acronym DRIP
11. Explain how failing to diversify can be an investing mistake.
12. Give an example of a Defensive Stock.____________________________
13. What is a good target price to establish?
