The stocks that are of high quality, the companies which are established, big, renowned, and are in the market for decades are called blue chip stocks.
Blue chip is an analogy that is used for identifying the “most valued stock”.
Blue chip companies have the largest market share
Every company operates in a specific sector or industry and there can be many companies operating in similar sector/industry.
There are companies that operate in several sectors but each company has a core operating sector.
The reason being they yield consistent dividends, their future growth is more certain and during difficult times their stock price is more or less stable.
National Stock Exchange (around 2000 companies listed) and Bombay Stock Exchange (around 5000 companies listed).
1 to the high of Rs.
Also, note the broker will charge you brokerage charges and certain mandatory government taxes.
Though this question has been asked by those who wish to start investing in the stock market, it might have crossed others’ mind too who are sitting on the fence, and who have small regular savings.
It is suggested that you buy minimum shares of 15 to 20 different companies representing different sectors/industries so that you build up a diversified portfolio.
By diversifying your portfolio you are actually minimizing (spreading) the risk that you can take, as share market is volatile.
