Blue Chip company

In news:

• While Friday turned out to be the most volatile day for Indian stock markets, stock- specific action saw many blue-chips gaining over 20% compared to the day’s lows.

About Blue Chip

• A blue chip is a nationally recognized, well-established, and financially sound company.
• Blue chips generally sell high-quality, widely accepted products and services.
• The name "blue chip" came about from the game of poker in which the blue chips have the highest value
• A blue chip company is a multinational firm that has been in operation for a number of years.
• Blue chip companies are known to weather downturns and operate profitably in the face of adverse economic conditions, which helps to contribute to their long record of stable and reliable growth.
• Blue chip stocks are still nonetheless subject to volatility and failure, such as with the collapse of Lehman Brothers or the impact of the financial crisis on GM.

PRELIMS QUESTION:

Q. What is a blue chip company?

a. A company producing computer processors

b. A company involved in sustainable marine products

c. A nationally recognized, well-established, and financially sound companyd. A company manufacturing blue chips Answer to Prelims question