Growth and Value what's the Difference?

While most American investors understand the importance of each investment variation and growth, few are able to earn a pass rate in their knowledge of the differences between the two, according to a new study by American Century Investments.

Test your knowledge with the IQ Growth & Value IQ questions below:

1. What best describes growth stock?

a) Stocks that offer a guaranteed growth rate combined with a consumer price index.

b) Stock in a company that specializes in agriculture, timber, gardening and other natural products.

c) A company's stock that shows better than average profit and profit.

d) All of the above.

2. Which best describes stock value?

a) Stocks in a fast-growing company focused on high-value, low-cost products, as a discount retailer.

b) Stocks in a company that specializes in jewelry, such as jewelry and jewelry.

c) Stock with low price to book.

d) All of the above.

3. Which statement is true?

a) Stock prices grew better than stock growth between 1927 and 2001.

b) Stocks of a small company value exceeded the shares of large companies between 1927 and 2001.

c) Maintaining a portfolio with a combination of growth and value shares is often considered a smart investment option.

d) All of the above.

4. During a period of strong economic expansion, which fund usually works best?

a) Growth.

b) Price.

c) Not at all.

d) Both.

5. In general, value for money exceeds growth rates in 2000 and 2001.

a) Of course.

b) False.

6. In general, growth profits exceeded the value of their value in the 1990s.

a) Of course.

b) False.

7. What type of fund can invest shares that pay a significant share?

a) Growth.

b) Price.

c) Not at all.

d) Both.

8. Higher price-to-earnings rates can often be associated with what kind of share fund shares?

a) Growth.

b) Price.

c) Not at all.

d) Both.

9. What kind of stock is described in this example: “The used baked goods company with a strong balance and cash flow that meets a temporary decrease in response to changes in senior management.”

a) Growth.

b) Price.

c) Not at all.

10. What kind of stock is described in this example: "The software company, which enjoys a significant increase in sales, is in the process of releasing the much-anticipated update to the popular software application."

a) Growth.

b) Price.



Key: 1 (c); 2 (c); 3 (d); 4 (a); 5 (a); 6 (a); 7 (b); 8 (a); 9 (b); 10 (a). - NU