Blue Chip
A nationally recognized, well-established and financially sound company. Blue chips generally sell high-quality, widely accepted products and services. Blue chip companies are known to weather downturns and operate profitably in the face of adverse economic conditions, which helps to contribute to their long record of stable and reliable growth. Investopedia Says:
The name "blue chip" came about because in the game of poker the blue chips have the highest value.
Blue chip stock is seen as a less volatile investment than owning shares in companies without blue chip status because blue chips have an institutional status in the economy. The stock price of a blue chip usually closely follows the S&P 500. Related Terms:
Blue-Chip Stock
Dow Jones Industrial Average - DJIA
Large Cap
Liquidity
Mega Cap
New York Stock Exchange - NYSE
Russell Top 50 Index
Standard & Poor's 500 Index - S&P 500
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