Blue chip stocks are stocks of a large and established company with a long history of delivering sound financial results. These stocks have the potential to bear challenging market situations. These stocks have a good reputation in the market, and their stock prices are generally higher as they are the market leaders.
Blue chip stocks are considered a relatively lower risk investment as they have a track record of success and stable growth. However, these stocks are subject to volatility and failure.
Investors prefer blue-chip stocks as they tend to provide a steady rate of return. Some other features which make these stocks popular include:
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