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Blue Chip Stock?

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Jyoti

Jyoti (Querist)

23 July 2011 What is the meaning of Blue Chip Stock?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

23 July 2011 Blue Chip companies are 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. 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.

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