New Delhi, May 29 -- Well-established, financially stable companies with a significant market share are popularly known as blue-chip companies. Many traders and investors prefer shares of blue-chip companies as they typically offer stability and regular dividends.

A blue-chip stock is issued by a large, established company known for its financial stability and strong reputation. These companies typically have a long operating history, generate consistent earnings, and often distribute dividends to their investors. Such companies have a high market capitalisation and are often among the top firms in their sector.

Often considered to be the backbone of a stable and well-diversified portfolio, one of the most notable advantages of blue chi...