How to find and invest in blue-chip stocks for long-term?
The stocks that are of high quality, the companies which are established, big, renowned, and are in the market for decades are called blue chip stocks . Blue chip stocks got their name from the poker game. In a poker game, there are three colored chips white chips (valued at $1), red chips (valued at $5), and blue chips (valued at $10). Blue chip is an analogy that is used for identifying the “most valued stock”. What factors make a stock/company “blue chip”? There is a combination of factors that transform a stock into a blue-chip stock means the stocks Which has the largest market share Is highly valued. Has strong financial standing. Pays regular and high dividend . The company is large and established one. Strong and known brand name. Which has high weight-age in main stock indices etc. Blue chip companies have the largest market share Every company operates in a specific sector or industry and there can be many companies operating in ...