BLUE-CHIP STOCK

Blue-chip Stock can be defined as stock of a large, well-established and financially sound company that has operated for many years. A blue-chip stock typically has a market capitalization in the billions, is generally the market leader or among the top three companies in its sector. You will invariably find that is to be a household name. Most blue-chips have a record of paying stable or rising dividends for years. The term is believed to have been derived from poker, where blue chips are the most expensive chips.

A blue-chip company may have survived several challenges and market cycles over the course of its life which leads to it being perceived as a safe investment.

 

 

 

 

 

 

 

 

 

 

 

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