Blue Chip

Filed Under »
Dictionary Says

Definition of '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

Investopedia explains 'Blue Chip'

The name "blue chip" came about because in the game of poker the blue chips have the highest value.

Blue chip stocks are 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. Investors may buy blue chip companies to provide steady growth in their portfolios. The stock price of a blue chip usually closely follows the S&P 500.

Related Definitions

  • No Quote

    A stock that is inactive or not currently being traded. A no-quote stock does not have a bid or ask price. No quote stocks may be infrequently traded and thus difficult to buy or sell. ...
    Read More »
  • Large Cap - Big Cap

    A term used by the investment community to refer to companies with a market capitalization value of more than $10 billion. Large cap is an abbreviation of the term "large market ...
    Read More »
  • Mega Cap

    The biggest companies in the investment universe, as measured by market capitalization. While there is no exact definition of the term, mega cap generally refers to companies with a ...
    Read More »
    • New York Stock Exchange - NYSE

      A stock exchange based in New York City, which is considered the largest equities-based exchange in the world based on total market capitalization of its listed securities. Formerly run ...
      Read More »
    • Standard & Poor's 500 Index - S&P 500

      An index of 500 stocks chosen for market size, liquidity and industry grouping, among other factors. The S&P 500 is designed to be a leading indicator of U.S. equities and is meant to ...
      Read More »
    • Stock

      A type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings. There are two main types of stock: common and ...
      Read More »
    • Blue-Chip Stock

      Stock of a well-established and financially sound company that has demonstrated its ability to pay dividends in both good and bad times.
      Read More »
    • Liquidity

      1. The degree to which an asset or security can be bought or sold in the market without affecting the asset's price. Liquidity is characterized by a high level of trading activity. ...
      Read More »
    • Russell Top 50 Index

      A market capitalization weighted index of the 50 largest stocks in the Russell 3000 universe of U.S.-based equities. The index can be considered a representation of mega cap stocks, as ...
      Read More »
    • Fortune 100

      An annual list of the 100 largest public and privately-held companies in the United States. The ranking is compiled using gross revenue figures, and is published by Fortune magazine.
      Read More »

Articles Of Interest

Partner Links