Stock Market Investors » Glossary of Stock Terms » What is a Blue Chip Stock?

What is a Blue Chip Stock?

The companies that are regarded as being one of the most prestigious and stable in the stock market are commonly referred to as blue chip stocks. Such companies have shown consistent earnings and usually have long-term growth potential.

Interesting fact

Blue was the color of the wagering chip with the highest value. It is believed that the name comes from there and that the stocks the term is actually referring to are considered to be "safe and winning bets."

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