1. What is a blue chip stock?
A blue chip stock is stock issued by a large, well-established, financially-sound company with an excellent reputation.
2. Is it safe to invest in blue chip?
Blue Chip Stocks or Funds is generally considered safer than many other investment options due to the stability of these established companies.
3. How do I buy blue-chip stocks?
Blue-chip stocks typically have large market caps, a large-cap index fund or ETF is a good way to get exposure to these companies.
4. Why are stocks called blue chips?
Blue chip" comes from the game of poker, where blue chips are the highest value pieces.
5. Is TCS a blue chip stock?
Corporations like Reliance Industries, Tata Consultancy Services, and HDFC Bank are the blue chips of the country.
6. How do you identify blue chip stocks?
They include consistent annual revenue over a long period, stable debt-to-equity ratio, average return on equity (RoE) and interest coverage ratio besides market capitalisation and price-to-earnings ratio (PE).
7. What are the best blue chip stocks right now?
JP Morgan Chase & Co. (JPM) Walmart Inc. (WMT) Johnson & Johnson (JNJ) Procter & Gamble Co. (PG)