Review the article: The Basics for Investing in Stocks by the editors of Kiplinger's personal finance magazine
Then, Response to the following :
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?
14. What are penny stocks?