Blue Chip Meaning

A blue chip is a high-quality, relatively low-risk investment; it usually refers to stocks of large, well-established companies that have performed well over a long period of time. The term is originally from poker, where the blue chips are the most valuable.

What Is a Blue Chip Company?

Blue chip companies are well-established, financially stable, and less risky to invest in. They are seen by investors as reliable and profitable as these companies perform well not only in good financial situations, but also in bad ones. Examples of blue chip companies are AT&T Inc., Bank of America, and Coca-Cola Co.

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