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Question

Blue chip stocks ________.
A) are issued by companies that pay large dividends
B) are issued by companies that generate sustained positive cash flow
C) are issued by utility companies
D) are issued by companies producing staples such as food, drugs, and insurance and usually maintain their value regardless of the state of the economy
E) are issued by companies that have a long history of consistent growth and stability

Answer

15 Seconds
E) Blue chip companies pay regular dividends and maintain a reasonably steady share price. General Electric, IBM, The Walt Disney Company, and 3M are examples of companies that are considered blue chip stocks.
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