Busıness Fınance I Deneme Sınavı Sorusu #1138733

Which of the following is the term for the stocks of the companies that are using their profits and cash flows to support its investments, and as a result do not have resources to pay dividends.


Income Stocks

Penny Stocks 

Blue-Chip Stocks

Growth Stocks

Preferred Stocks


Yanıt Açıklaması:

The stocks that pay no or very low dividends and still have prices that increase are called growth stocks. Rapidly growing companies require a lot of investments, growth stock companies usually are using their profits and cash flows to support these investments and as a result do not have resources to pay dividends. Therefore, the correct answer is C, Growth Stocks.

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