Partial ownership of a firm that is considered to be the strongest and financially sound is done through what method?
A) Buying of mutual funds
B) Buying of blue-chip stocks
C) Dividend reinvestment
D) Funding of aggressive growth opportunities
E) Buying of load funds

Question

Quizplus · Accepted Answer

Blue-chip stocks are those that are issued by companies that have a strong reputation for financial stability, performance, and profitability. Investing in blue-chip stocks provides partial ownership in such firms and is considered relatively low-risk compared to other investment options. Mutual funds and load funds may not necessarily target blue-chip stocks, while dividend reinvestment and funding of aggressive growth opportunities are not methods of partial ownership.

Partial Ownership of a Firm That Is Considered to Be