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What is blue-chip stock and are they foolproof, explained

Updated : July 16, 2019 07:51 PM IST

Usually only stocks of top ranking companies from respective sectors are considered as blue chip stocks. An example for this could be the stocks of companies like Pepsi Co., Airbus, Microsoft etc.
Market cycles, and other challenges faced by the firm could undermine the value of blue chip stocks.
Generally only stocks of those companies having a market capitalization of 500 crore dollars are classified as blue chip stocks.
What is blue-chip stock and are they foolproof, explained
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