When referring to a company, what does the term Blue Chip mean??
Generally speaking blue chip companies are the companies which are listed on the stock exchange and have established company and financial structures which generally have strong management. Usually these are the large public companies which hold relatively safer investment opportunities. A blue chip stock is the stock of a well-established company having stable earnings and no extensive liabilities. The term derives from casino, where blue chips stand for counters of the highest value. Most blue chip stocks pay regular dividends, even when business is faring worse than usual. They are valued by investors seeking relative safety and stability, though prices per share are usually high. Typically, such stocks are perceived to offer reliable returns, low yield, and low risk. A blue chip company is a nationally recognized, well-established and financially sound company. Blue chips generally sell high-quality, widely accepted products and services. Blue-chip companies are known to weather do
