Business, Legal & Accounting Glossary
Blue-chip stock is equity in the securities of high-quality companies. Blue-chip stock is often also high in public share price. Blue-chip stock is a term named after the blue-coloured highest poker chip denomination. Stock of “blue chips” or “blue-chip stock” demonstrate some combination of high credit rating, strong balance sheet, stable earnings power. A blue-chip stock usually has a diversified revenue base. Most Dow Jones Industrial Average (DJIA) companies fall into the category of blue-chip stock. A blue-chip stock is not limited to the thirty stocks in the Dow, blue-chip can imply any publicly traded stock in a leading international company listed in a foreign stock market. Blue-chip stock is often found in conservative investors and retirement portfolios. Volatility for blue-chip stock is typically lower than that of lesser-known, more thinly traded stocks. Blue-chip stock is often popular in market downturns for their ability to pay dividends no matter what the economic climate.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
Definitions for Blue Chip Stock are sourced/syndicated and enhanced from:
This glossary post was last updated: 4th February, 2020 | 2 Views.