Sean Barber wants to invest in a stock that is relatively safe,suitable for conservative investors,and less speculative than other stocks.What type of stock best fits Sean's requirements?

Question

Quizplus · Accepted Answer

Blue-chip stocks are stocks of large, well-established companies with a solid reputation and stable financial performance. They are generally considered less risky and more suitable for conservative investors than small-cap, midcap, or growth stocks, which tend to be more volatile and speculative. Cyclical stocks are also more speculative, as their performance is tied to economic cycles, while blue-chip stocks are more stable and less affected by market fluctuations. Therefore, a blue-chip stock is the best choice for Sean's requirements.

Sean Barber Wants to Invest in a Stock That Is