Blue Chip

What does it mean?
A security from a well-established and financially-sound company that has demonstrated its ability to pay dividends in both good and bad times.

In Other Words...
These stocks are usually less risky than other stocks. The stock price of a blue chip usually closely follows the S&P 500.

The name "blue chip" came about because in the game of poker the blue chips were traditionally the most expensive ones.

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Related Terms
DJIA | Large Cap Stock | Mega Cap | NYSE | S&P 500 | Stock

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