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Blue Chip Stocks
Consider the following statements with reference to the Blue Chip Stocks:
- Blue chip stocks are shares of very large and well-recognised companies with a long history of sound financial performance.
- These stocks generally cost high, as they have good reputation and are often market leaders in their respective industries.
Choose the correct answer from the codes given below:
A |
Only 1
|
|
B |
Only 2
|
|
C |
Both 1 and 2
|
|
D |
Neither 1 nor 2
|
Your Ans is
Right ans is C
Your Answer Is Correct
Your Answer Is Wrong
Explanation :
- Oliver Gingold, who worked at Dow Jones, coined the phrase ‘Blue Chip’ in 1923.
- Blue chip stocks are shares of very large and well-recognised companies with a long history of sound financial performance.
- These stocks are known to have capabilities to endure tough market conditions and give high returns in good market conditions.
- These stocks generally cost high, as they have good reputation and are often market leaders in their respective industries.
- Investors turn to blue-chip stocks because they have dependable financials and often pay dividends.
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