Community Forex Questions
What are high-quality stocks and how are they defined?
High-quality stocks are stocks that are believed to have a lower risk of financial distress or bankruptcy and are associated with companies that are considered to have strong financial fundamentals. These stocks are often considered to be stable, reliable investments that provide consistent returns over time.

The definition of high-quality stocks can vary depending on the investor's criteria, but some common characteristics include a history of consistent earnings growth, a strong balance sheet, low levels of debt, and a competitive advantage within their industry.

Investors typically focus on high-quality stocks as a way to mitigate risk in their portfolios and provide a stable foundation for long-term growth. By investing in companies with strong financial fundamentals, investors can minimize the risk of losing money in the stock market and increase the likelihood of achieving their investment goals.

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