Learn / Glossary / Blue chip stock
GlossaryWhat is Blue chip stock?
A blue chip is a big, well established company with a long record of staying strong.
The simple explanation
These companies usually have steady earnings, solid finances and often pay dividends. They tend to be less risky than small young companies, though they can still lose value.
An example
Large, long running companies in consumer goods and banking are often called blue chips.
Why it matters
Blue chips are the usual starting point for people learning about stocks.
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Educational information, not financial advice.