Disney

Definition

Disney is a global entertainment conglomerate known for its film studios, theme parks, and media networks. In finance, Disney serves as an example of a blue-chip stock with a diversified portfolio, impacting risk and return considerations for investors.

5 Must Know Facts For Your Next Test

1. Disney's diversified business model helps mitigate individual asset risk.
2. The company's revenue streams include media networks, parks and resorts, studio entertainment, and direct-to-consumer services.
3. Disney's acquisition strategy, such as the purchase of Pixar, Marvel, Lucasfilm, and 21st Century Fox, enhances growth potential.
4. Investing in Disney stock historically shows lower volatility compared to the broader market due to its diverse operations.
5. Dividend payments from Disney contribute to investor returns while offering some protection against market downturns.

Review Questions

• How does Disney's diversified business model impact its overall risk profile?
• What are the primary revenue streams that contribute to Disney's financial stability?
• Why might an investor consider Disney a lower-risk investment compared to other stocks?

Related terms

Blue-Chip Stock: A large, well-established company with a history of reliable financial performance.

Diversification:

The process of allocating investments across various financial instruments or sectors to reduce risk.

Volatility:

A statistical measure of the dispersion of returns for a given security or market index.