Financial Glossary what is blue-chip


Blue Chip

A company with a large market capitalisation, stable earnings, consistent dividend record, and reputation as a reliable investment. There are no formal rules for joining the ranks of blue chips, and not necessarily any agreement about which companies belong to the club, but the companies that make up a country's leading stock index would commonly be regarded as blue chips. The term is believed to come from the gambling chip used in casinos.
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