Blue Chips Stock and Investment

Blue- trash Stocks Characteristics UBS Financial Services, Inc. chose companies that have at least cardinal of the six following characteristics to be considered a spunky chip: ?rated Buy by the Sponsor (See UBS Investment Research Ratings system in the prospectus); ?market capitalization in excess of $5 billion; ?financial strength, a record of profit harvest-home and reputation for skilled management; ?established, well-known society considered to be stable and mature with a reputation for providing high whole tone goods and services; and ?leader in its market niche. ?In addition, companies ar analyzed for their record of earnings over a comparatively long period of time and future potential. Dividend payments, while non required, are considered.[5] It can be inferred from history that a blue chip stock is one that is very likely to let a fair return on investment. And in sound out to do so, a stock must have a proven track record, be financially sound, and must be somewhat insulated from the ups and downs of the economy. Other terms that are often utilize in conjunction with blue chip include bellwether and market place Capitalization. Bellwether is a term used to describe a company that is recognized as the leader in its industry.

For example, Microsoft would be considered a bellwether stock for computer software. Large cap is a name and address to the size of a company in terms of correspond market capitalization. Market capitalization is simply calculated by taking the number of shares outstanding and multiplying by the stocks topical price per share.[6] Investment, Investing, Types of Investment Investment refers to the concept of deferred consumption, which involves purchasing an asset, giving a loan or keeping funds in a bank account with the aim of generating future returns. Various investment options are available, offering differing risk-reward trade offs. An understanding of the core concepts and a thorough analysis of the options can help an investor create a... If you expect to get a full essay, order it on our website: Orderessay

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