What are blue-chip stocks primarily known for in the stock market?

High volatility and frequent price swings Association with small, emerging companies Stability and consistent dividend payments Unpredictable returns and high risk

What is a defining characteristic of companies that issue blue-chip stocks?

They are newly established businesses with limited market history They have a small market capitalization and limited financial resources They are highly regarded in the market with a proven track record of financial stability They primarily operate in niche markets with limited competition

How are the returns from blue-chip stocks typically distributed to investors?

Through monthly interest payments Through annual lump-sum payments Through quarterly dividend payments Through irregular, unpredictable payouts

What is the general investment horizon associated with blue-chip stocks?

Short-term, typically less than a year Medium-term, around 3 to 5 years Long-term, usually over 7 years Variable, depending on market fluctuations

What is a potential drawback of investing in blue-chip stocks?

They tend to have a high growth rate, leading to rapid price fluctuations They offer high dividend yields, making them unsuitable for income-focused investors They are relatively inexpensive, making them accessible to all types of investors They may have a slow growth rate, requiring patience to see substantial returns

Which of the following is an alternative investment option to blue-chip stocks, offering potentially higher returns but with greater risk?

Fixed deposits Government bonds Exchange-traded funds (ETFs) Real estate