Blue Chip Stocks

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.