Question

Stocks whose earnings have increased at an above-average level over time are called:

A) Cyclical stocks.
B) Growth stocks.
C) Income stocks.
D) Speculative stocks.
E) Defensive stocks.

Answer 1

Growth stocks are stocks whose earnings have increased at an above-average level over time.

Step-by-step explanation:

Stocks whose earnings have increased at an above-average level over time are called Growth stocks. These stocks represent companies that have a high potential for growth and profitability in the future. They typically reinvest their earnings back into the business to fuel expansion and innovation, rather than paying them out as dividends. Growth stocks can be found in various sectors, such as technology, healthcare, and consumer goods.