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5. Identifying types of common stock What Are the Types of Common Stock? There are many types of common stock, each of which offers the

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5. Identifying types of common stock What Are the Types of Common Stock? There are many types of common stock, each of which offers the investor different risks and rewards. Suppose you currently own stock in two different types of companies, Company X and Company Y. The chart below depicts the share values of Company X and Company Y's stock for the years 2000-2012. Based on what you know about the different company types, identify which line is more likely to correspond to which company. STOCK PRICE 200 160 A 120 80 40 U 2000 2004 2008 2010 2012 2002 2006 YEAR A Company X Company Y Company X is stock company, a type of stock Company Y is stock company, a type known for known for its stable stream of earnings that risk growth spurts that can dramatically affect earnings and stock prices, and most of which hold the potential for relatively risk Of the two stocks described, which one more closely resembles the behavior of a tech stock? Company Y Company X 5. Identifying types of common stock What Are the Types of Common Stock? There are many types of common stock, each of which offers the investor different risks and rewards. Suppose you currently own stock in two different types of companies, Company X and Company Y. The chart below depicts the share values of Company X and Company Y's stock for the years 2000-2012. Based on what you know about the different company types, identify which line is more likely to correspond to which company. STOCK PRICE 200 160 A 120 80 40 U 2000 2004 2008 2010 2012 2002 2006 YEAR A Company X Company Y Company X is stock company, a type of stock Company Y is stock company, a type known for known for its stable stream of earnings that risk growth spurts that can dramatically affect earnings and stock prices, and most of which hold the potential for relatively risk Of the two stocks described, which one more closely resembles the behavior of a tech stock? Company Y Company X

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