Which of the following is a characteristic of a blue-chip stock?

A blue-chip stock is characterized by its reliability, stability, and the ability to offer consistent dividends, which aligns with the second option. These stocks are typically issued by well-established companies that have a history of strong performance and financial stability. They are generally perceived as safer investments because they tend to maintain their value even in market downturns and provide shareholders with a reliable income stream through dividends.

Investors often gravitate towards blue-chip stocks during periods of market volatility, as they are less likely to experience radical fluctuations in price compared to more speculative stocks. This consistent performance is one of the primary reasons why blue-chip stocks are considered a cornerstone of many investment portfolios.

The other options describe characteristics that are not typical of blue-chip stocks, such as high volatility and risk associated with certain types of stocks, investments in startups which usually come with a higher risk and potential for growth rather than stability, and the misconception that blue-chip stocks are only available to institutional investors, as they are widely accessible to individual investors as well.