Question

Which best describes the following stock? It is stock in a company that is smaller, less established, and risky. Because the future of this company is uncertain, there a possibility of large growth.

a
Blue Chip Stock
b
Emerging Stock
c
Income stock
d
Preferred stock

Answer 1

b) Emerging stock

Explanation: Blue-chip = large, well-established, stable; income = focuses on regular dividends; preferred = a special share class with fixed dividends. A smaller, less-established, higher-risk company with high growth potential is an emerging (or growth) stock.