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Blue Chip Stock

Glossary

Blue-chip stocks are shares of large, well-established, and financially stable companies with a history of strong performance. These companies, like Apple (AAPL), Microsoft (MSFT), and Coca-Cola (KO), tend to have steady earnings, lower volatility, and consistent dividend payouts. Investors favor blue-chip stocks for their resilience during market downturns and long-term growth potential. While they may not have explosive gains like smaller stocks, they provide reliable returns and lower risk.