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Taylor Kane

Blue-Chip Common Stock: A Stock that is thought to be safe, in excellent financial shape and firmly entrenched as a leader in its field. –About.com: Economics. Taylor Kane. Broader group of Investments Blue-Chip Stock belong to?. Common Stock

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Taylor Kane

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  1. Blue-Chip Common Stock:A Stock that is thought to be safe, in excellent financial shape and firmly entrenched as a leader in its field. –About.com: Economics Taylor Kane

  2. Broader group of Investments Blue-Chip Stock belong to? Common Stock • Stock that ordinarily has no preference in the matter of dividends or assets and represents the residual ownership of a corporate business.–Defined by Dictionary.com

  3. Further Definitions of a Blue-Stock? • A blue chip stock is one that entails unusually small risk (risk being a subjective judgment). Stocks considered “blue chip” are issued by large stable corporations. –About.com: Economics • Stock of a well-established and financially sound company that has demonstrated its ability to pay dividends in both good and bad times. –Investopedia

  4. Examples of Blue-Chip Investments Investments in.. • Wal-Mart • Coca-Cola • Gillette • Berkshire Hathaway • Exxon-Mobile

  5. Characteristics of Blue Chip Stocks • An established record of stable earning power over several decades • An equally long record of uninterrupted dividend payments to common stock holders • A history of regular increases in the dividends payable to each share • Strong balance sheets with a moderate debt burden • High credit ratings in the bond and commercial paper markets • Large size relative to American businesses as a whole in terms of revenue and market capitalization • Diversified product lines and / or geographic location • A competitive advantage in the market place due to cost efficiencies, franchise value or distribution control

  6. How can an investor acquire blue chip stocks? An investor can buy shares directly through a broker, a direct stock purchase plan, a dividend reinvestment plan or purchase a mutual fund that specializes in blue chip stocks.–About.com: Investing for Beginners What kind of Investor invests in Blue-chip stocks? Every kind. New investors like it because it is safe and experienced ones like it because investments are not only safe but also pretty much guarantee a return.

  7. Risk and Price of Blue Chip Stock? • Blue chip stocks are usually less risky than the other stock on the market. –Investopedia • The stock price of a blue chip usually closely follows the S&P 500 – Investopedia Something Interesting.. The origin of the name Blue-Chip: The highest value wagering chip in poker was blue in color. Blue chip stocks are highly valued because they are shares in companies considered to be at the core of the American economy. The name actually refers to a “safe bet.”

  8. Works Cited • "Blue-Chip Stock." Welcome to Investopedia.com. N.p., n.d. Web. 8 Mar. 2010. <http://www.investopedia.com/terms/b/bluechipstock.asp>. • Kennon, Joshua. "The Benefits of Owning Blue Chip Stocks." Investing for Beginners. N.p., n.d. Web. 8 Mar. 2010. <http://beginnersinvest.about.com/cs/bluechipstocks/a/aabluechipben.htm>. • Kennon, Joshua. "What is a Blue Chip Stock." Investing for Beginners. N.p., n.d. Web. 8 Mar. 2010. <http://beginnersinvest.about.com/cs/bluechipstocks/f/whatisabluechip.htm>.

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