An investor is considering purchasing one of the following three stocks. Stock X has a market capitalization of $6 billion, pays a relatively high dividend with little increase in earnings, and has a P/E ratio of 10. Stock Y has a market capitalization of $ 61billion but does not currently pay a dividend. Stock Y has a P/E ratio of 37. Stock? Z, a housing industry company, has a market capitalization of $802 million and a P/E of 17
a. Classify these stocks according to their market capitalizations.
b. Which of the three would you classify as a growth stock Why?
c. Which stock would be most appropriate for an aggressive investor?
d. Which stock would be most appropriate for someone seeking a combination of safety and earnings?
Question - Stock X is classified as a____-stock
a. small-cap
b. mid-cap
c. large-cap