Answer to Question #158391 in Economics for sandeep

Question

ackie is a share trader who owns shares as trading stock because they are held for sale in the ordinary course of his business. He decided to purchase shares in various blue-chip companies as a long-term investment to provide for his children's education in the future. The children are currently three and five years old.

Are the shares in the blue-chip companies trading stock for Jackie?

Answer 1

In the investment world, a blue chip company is well-known, well-established, and well-capitalized. Such a company is considered to be a leading company in its sector and produces dominant goods or services. Blue chip companies are usually better prepared to survive during economic downturns due to their consistent revenues and stable growth over time.

So, the shares in the blue-chip companies trading stock are for Jackie.