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Because a blue chip stock is in a corporation and has a national reputation for reliability, quality and the ability to operate profitability in good times and bad.
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What does the term blue chip stocks mean?
Blue chip stock is a terminology used is within the stock market to mean that a company that is well established and financially not making losses. An investment with a blue chip company is often considered the most secure type of stock investment that can be made.
Are penny stocks good for beginner investments?
Penny stocks are way riskier than Blue chips. Definitely not a beginner stock. No doubt if you are buying in small quantity, then your losses arent much. But if you are in the market to make money, buy blue chips first.
What is the difference between blue-chip stocks and speculative stocks?
Blue Chip stocks are the largest companies in the stock market, typically the companies in the Dow Jones index and similars. They are supposed to be stable and high-quality, while speculative stocks have a high probability of moving a lot in price either up or down, like prospecting mining companies, high technology companies, and similars.
How do I pick stocks to buy that will be successful?
It would be wonderful to know which stocks to buy. The price of stocks is primarily based on supply and demand. If people want the stock then they are willing to pay more money for it. There is all types of market information that goes into stock valuation, and many people spend years in university learning about all the markets and all of the imperfect market information that makes it possible for people to essentially make an educated stock about how a stock will perform. You will earn more on higher risk and more volatile stocks but there are blue chips stocks that generally offer a decent return over the long term.
What is a blue chip share?
The word 'Blue chip stock' refers to the equity in the securities of high quality companies. Blue chip stock is often also high in public share price. A blue chip stock is the nickname for a stock that is thought to be a relatively safe investment. Blue chip stock is a term named after the blue-colored highest poker chip denomination. Stock of "blue chips" or "blue chip stock" demonstrate some combination of high credit rating, strong balance sheet, stable earnings power. A blue chip stock usually has a diversified revenue base. Most Dow Jones Industrial Average (DJIA) companies fall into the category of blue chip stock. Blue chip stock is not limited to the thirty stocks in the Dow, blue chip can imply any publicly traded stock in a leading international company listed in a foreign stock market. Blue chip stock is often found in conservative investors and retirement portfolios. Volatility for blue chip stock is typically lower than that of lesser known, more thinly traded stocks. Blue chip stock is often popular in market downturns for their ability to pay dividends no matter what the economic climate. The most famous of the blue chips make up the Dow Jones Industrial Average. The "Dow" consists of the 30 largest and most widely-held public companies in the United States. Some of the companies in the Dow include Coca-Cola, American Express, IBM, General Electric, and Walt Disney. - Md. Sohel Rana (Bangladesh) +8801714228302
What is nifty and BSE?
Two completely different things. There are two stock exchanges in India--the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). NIFTY is kinda like the Dow Jones Industrial Average--it's an index of fifty blue-chip stocks that trade on the National Stock Exchange. You can trade against this like you can trade against the S&P 500 or any other stock index.
What are blue chips stock?
A blue chip stock is the stock of a well-established company having stable earnings and no extensive liabilities. The term derives from casinos, where blue chips stand for counters of the highest value. Most blue chip stocks pay regular dividends, even when business is faring worse than usual. The phrase was coined by Oliver Gingold of Dow Jones sometime in 1923 or 1924. Company folklore recounts that the term apparently got its start when Gingold was standing by the stock ticker at the brokerage firm that later became Merrill Lynch. Noticing several trades at USD$200 or USD$250 a share or more, he said to Lucien Hooper of W.E. Hutton & Co. that he intended to return to the office to "write about these blue chip stocks." Thus the phrase was born. It has been in use ever since, originally in reference to high-priced stocks, more commonly used today to refer to high-quality stocks. In contemporary media, Blue Chips and their daily performances are frequently mentioned alongside other economic averages like the Dow Jones Industrial Average.
Blue chip in stock market?
A blue chip stock is the stock of a well-established company having stable earnings and no extensive liabilities. The term derives from casinos, where blue chips stand for counters of the highest value. Most blue chip stocks pay regular dividends, even when business is faring worse than usual. The phrase was coined by Oliver Gingold of Dow Jones sometime in 1923 or 1924. Company folklore recounts that the term apparently got its start when Gingold was standing by the stock ticker at the brokerage firm that later became Merrill Lynch. Noticing several trades at USD$200 or USD$250 a share or more, he said to Lucien Hooper of W.E. Hutton & Co. that he intended to return to the office to "write about these blue chip stocks." Thus the phrase was born. It has been in use ever since, originally in reference to high-priced stocks, more commonly used today to refer to high-quality stocks. In contemporary media, Blue Chips and their daily performances are frequently mentioned alongside other economic averages like the Dow Jones Industrial Average.
How does red and blue light differ from each other?
their wavelenghts are different
What are the advantages of blue-chip stocks?
nothing
What is non blue-chip stocks?
Stocks that do not have a proven track record of steady pay back or build up
How does Anthem Blue Cross differ from Horizon Blue Cross?
Anthem blue cross does not infact differ that much from Horizon Blue Cross, or atleast in my opinion.
