Fact vs. Fiction Archive

Fiction: All blue-chip stocks are low risk.

Fact: Like any investment, blue-chip stocks can decline in value. It is true that blue-chip companies are generally established and financially stable. Although most have reputations for positive performance, blue-chip stocks do not guarantee low risk. Northern Rock, a U.K. mortgage bank, is just one example of a blue-chip stock that ended in failure.


Back to Archive


© Copyright 2011 Commonwealth Financial Network