{"id":2768,"date":"2022-08-08T14:24:58","date_gmt":"2022-08-08T07:24:58","guid":{"rendered":"https:\/\/www.nanovest.io/blog\/?p=2768"},"modified":"2023-02-03T21:22:21","modified_gmt":"2023-02-03T14:22:21","slug":"blue-chip-stocks","status":"publish","type":"post","link":"https:\/\/www.nanovest.io/blog\/tips-dan-tutorial\/blue-chip-stocks-2768\/","title":{"rendered":"Blue Chip Stocks: What They Are and What They Look Like in Global Market"},"content":{"rendered":"

When you start investing in stocks, some financial advisors and individuals who have become investors before you will usually suggest buying blue chip stocks first. This way, they say, will allow you to \u2018learn by doing\u2019 or to understand how the stock market system works. But, what is actually a blue chip stock?<\/span><\/p>\n

Read this article for details!<\/span><\/p>\n

What is a blue chip stock?<\/b><\/p>\n

According to <\/span>Investopedia<\/span><\/i>, blue chip stocks are huge companies\u00a0 with excellent reputations. These are typically large, well-established and financially sound companies.<\/span><\/p>\n

The aforementioned factors made the investors think that blue chip stocks can survive stock market challenges, therefore they would recommend you to invest in blue chip stocks. In the majority of cases, this is actually true. However, this does not mean that you just need to invest in blue chip stocks. Keep in mind that a diversified portfolio is a must!<\/span><\/p>\n

Characteristics of blue chip stocks<\/b><\/p>\n

Still according to Investopedia, a<\/span> blue chip stock typically has a\u00a0<\/span>market capitalization<\/span><\/a>\u00a0in the billions, is generally the\u00a0<\/span>market leader<\/span><\/a>\u00a0or among the top three companies in its sector, and is more often than not a household name.\u00a0Beside these, blue chip stocks also have other characteristics, such as:<\/span><\/p>\n