Stephanie is an investor who believes that the real key to a company's future stock price lies in its future earnings. When investing in a company, she carefully studies its future earnings potential, and sells a company's stock at the first sign of any trouble. This information indicates that Della would correctly be classified as
A) a growth investor.
B) a value investor.
C) a buy-and-hold investor.
D) an index investor.

Question

Quizplus · Accepted Answer

Stephanie's investment strategy of focusing on future earnings and selling at the first sign of trouble aligns with the characteristics of a growth investor. Growth investors place emphasis on a company's potential for future growth, which is often reflected in its earnings. They typically invest in companies with high growth potential, even if their current stock price may be relatively expensive. Additionally, growth investors tend to have shorter holding periods and are more likely to sell a stock if it no longer meets their growth expectations.

Stephanie Is an Investor Who Believes That the Real Key