Investing for Beginners , investing

Blue chip stocks are stocks of the biggest large cap companies. Blue chip stocks usually are safer than average investment in stocks, have stable cash flow and pay stable dividends according dividend policy. Blue chip companies have to be in good financial shape and usually are leaders between competitors.

Almost every investor knows such stocks but it does not necessary mean that those are the best opportunities for investing. The old true is that you cannot ‘invent the bicycle’. The same is with stocks. If every financial analyst knows this stock, it means that there is very low probability that this stock would be highly undervalued and would be an extremely good investment opportunity. However, investments in widely known stocks are always safer than investments in some undiscovered small cap stocks.

Read more about investments in blue chip stocks.