Patrick graduated from college five years ago.He has set up an emergency fund and has been paying off his student loans.In addition,he participates in the retirement plan offered by his employer.He wants to invest $75 per month in very small companies (capitalization of $300 million or less).He should purchase _______ stocks.

Question

Quizplus · Accepted Answer

Micro cap stocks are the best choice as they have a market capitalization of $300 million or less, which matches Patrick's investment goal. Blue chip, midcap, and income stocks have larger market capitalizations and may not provide the same potential for growth as micro cap stocks. Penny stocks are typically viewed as high-risk investments and may not be suitable for Patrick's investment goals.

Patrick Graduated from College Five Years Ago