ECONOMICS (CBSE/UGC NET)

ECONOMICS

SAVING AND INVESTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
This type of stock is is considered a safe investment and is usually a industry leader
A
Common Stock
B
Growth Stock
C
Blue Chip Stock
D
Income Stock
Explanation: 

Detailed explanation-1: -Blue-chip stocks are big companies known for being valuable, stable and established. Blue-chips are popular among investors for their reliability, though they’re not immune to market downturns. Most blue-chip stocks are part of a large-cap market index like the S&P 100, Dow Jones Industrial Average or Nasdaq 100.

Detailed explanation-2: -Blue chip stocks are seen as relatively safe investments, with a proven track record of success and stable growth. Although blue chips are reliably stable, they are unlikely to generate the same high returns as potentially riskier investments.

Detailed explanation-3: -Blue-chip companies are those companies that are financially sound and hold a good reputation in the market of having consistent growth. The stocks of such companies are called blue-chip stocks and similarly, equity mutual funds that invest a major corpus in blue-chip stocks are known as blue-chip funds.

Detailed explanation-4: -Berkshire Hathaway. Berkshire Hathaway (NYSE:BRK. The Walt Disney Company. Vanguard High-Dividend Yield ETF. Procter & Gamble. Vanguard Real Estate Index Fund. Starbucks. Apple.

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