Stocks of established companies are called:
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A. B. C. D.B
The correct answer to the question is B. Blue chip stocks.
Blue chip stocks are the stocks of large, well-established, and financially stable companies that have a long history of strong performance and stable earnings. These companies are typically leaders in their respective industries and have a strong brand presence. Examples of blue chip stocks include companies like Coca-Cola, IBM, Johnson & Johnson, and Procter & Gamble.
Investing in blue chip stocks is generally considered to be a conservative investment strategy, as these companies are perceived to be relatively stable and reliable compared to smaller or riskier companies. Blue chip stocks are often included in the portfolios of long-term investors, including retirement funds and other institutional investors.
In contrast, growth stocks are shares in companies that are expected to experience rapid earnings growth and appreciation in stock value, but they may not be established companies yet. Cyclic stocks are stocks of companies whose performance is tied to the business cycle, such as those in the construction or automotive industries. Income stocks are stocks of companies that typically pay higher dividends to shareholders, but they may not be established companies either.
Overall, blue chip stocks are considered a cornerstone of many investors' portfolios because of their stability and potential for long-term growth.