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What does "blue chip stock" refer to?...

What does "blue chip stock" refer to?

A.

High-risk stocks

B.

Stocks of well-established, financially sound companies

C.

Stocks of new companies

D.

Stocks with low trading volume

E.

Stocks with high dividends

Correct answer is B

Blue chip stocks are shares of well-established, financially sound companies with a history of stable performance.