Blue-chip stocks the largest, most consistently profitable and prestigious companies. These stocks command a valuation premium because of their ability to deliver earnings and dividends year after year and because they have already been... 'discovered' (that is, they are widely tracked and known in the market). It is popularly believed that such stocks are less risky than their smaller counterparts and this is true to a certain extent on account of their high market share and strong balance sheets. Read more
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