Definition of Blue chip:
The term ‘blue chip’ was first used to describe high-priced stocks in 1923 when Oliver Gingold, an employee at Dow Jones, observed certain stocks trading at $200 or more per share. Poker players bet in blue, white, and red chips with the blue chips having more value than both red and white chips. Today, blue chip stocks don’t necessarily refer to stocks with a high price tag, but more accurately to stocks of high-quality companies that have withstood the test of time.
A blue chip 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 downturns and operate profitably in the face of adverse economic conditions, which helps to contribute to their long record of stable and reliable growth.
Large, prestigious, prosperous, and stable corporation. Blue chip firms have a solid record of earnings and dividend payments in both good and bad times, and have a strong long-term growth potential. The term comes from the game of poker in which the highest value chip is blue. Called first section in Japan.
Synonyms of Blue chip
Assessable stock, Authorized capital stock, Blue chip stock, Borrowed stock, Capital stock, Common stock, Convertible preferred stock, Corporate stock, Cumulative preferred stock, Cyclical stock, Defensive stock, Deferred stock, Eighth stock, Equities, Equity, Equity security, Fancies, Floating stock, Glamour issue, Growth stock, Guaranteed stock, High-flier, Hot issue, Hypothecated stock, Inactive stock, Income stock, Issued capital stock, Letter stock, Loaned stock, Long stock, Nonassessable stock, Nonvoting stock, Ordinary shares, Pale blue chip, Participating preferred stock, Penny stock, Preference stock, Preferred stock, Protective stock, Quarter stock, Rails, Reverse split, Seasoned stock, Share ledger, Shares, Short stock, Special situation stock, Specialty stock, Speculative stock, Split, Standard stock, Steels, Stock, Stock ledger, Stock list, Stock split, Stocks, Ten-share unit stock, Treasury stock, Unissued capital stock, Utilities, Voting stock
How to use Blue chip in a sentence?
- If you want to get an investment that should be pretty steady but has a little variance you could try a blue chip stock.
- Blue chip stocks are seen as relatively safer investments, with a proven track record of success and stable growth.
- We decided to only seek a blue chip company to invest in, as we wanted to be a part of something great.
- Blue chip firms are often considered by investors who are looking for financial investments with potential for solid growth, despite the fact that this growth is typically slow and comes over the period of many years.
- A blue chip refers to an established, stable, and well-recognized corporation.
- Blue chip stocks are still nonetheless subject to volatility and failure, such as with the collapse of Lehman Brothers or the impact of the financial crisis on GM.
Meaning of Blue chip & Blue chip Definition