Financial Planner

Category - Investment Planning

What type of stocks keep up with inflation or the general economy?
  1. Income Stocks
  2. Growth Stocks
  3. A and B
  4. None of the above
Explanation
Answer: C - Income and growth stocks keep up with inflation or the general economy. Income stocks pay regular and steady dividends and provide consistent current income for investors and appreciate enough to keep up with inflation. Growth stocks have sales, earnings, and market shares that grow at rates that are higher than those of an average company or general economy; however, little or no dividends are paid.
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