SIE Exam Practice Question 20

Correct Answer: A

Explanation:

A growth stock would not be considered appropriate for an investor with an objective of current income. Older investors, or those who are looking for more conservative securities, prefer value stocks that pay dividends, CDs with predetermined interest and consistent payouts, or bonds that pay interest and cannot lose value. Younger investors would prefer growth, or aggressive, stocks because of the potential short-term gain if the stocks do well, since they have time to recover the invested amount if the stocks do poorly.