Q. The term “blue chip” refers to stocks of companies that are:

[A] Newly launched and have high growth potential.

[B] Small and have volatile stock prices.

[C] Well-established and financially stable with a long history of success.

[D] Prone to high dividends but with slow growth.

Answer: C
Notes:

Explanation – The term “blue chip” refers to stocks of companies that are well-established and financially stable with a long history of success. Blue-chip stocks are typically associated with large, reputable, and financially sound companies that have demonstrated consistent performance and growth over an extended period. These companies are often market leaders in their respective industries and are considered relatively safe investments due to their track record of weathering economic challenges.

Source: The Hindu

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