If stock is issued in Pirate Recording, analysts predict that the company has potential for strong growth. The prospects for dividend payments to stockholders, at least in the beginning, are not good. Pirate Recording will need to retain its earnings in order to grow rapidly. The firm's stock would most likely be classified as a(n)
A) blue chip stock.
B) income stock.
C) growth stock.
D) capital stock.

Question

Quizplus · Accepted Answer

Growth stocks are stocks of corporations whose earnings are expected to grow faster than other stocks in the market. They seldom pay dividends.

If Stock Is Issued in Pirate Recording, Analysts Predict That