Blue chip stock

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Blue Chip Stock

Stock in a well-known and highly respected publicly-traded company. Blue chip companies are usually financially sound and are thought to be relatively low-risk investments. They tend to be less volatile than other companies and to provide solid growth to portfolios. Examples in the United States include General Electric and Coca-Cola. Indices such as the Dow Jones Industrial Average tracks blue chip stocks.

Blue chip stock.

Blue chip stock is the common stock of a large, well-regarded US company. The companies in that informal category are collectively known as blue chip companies. Blue chips have a long-established record of earning profits and paying dividends regardless of the economic climate.

They take their name from the most valuable poker chips. In the United Kingdom, in contrast, comparable firms are called alpha companies.

References in periodicals archive ?
Britain's blue-chip stocks have gained despite turbulence on the financial markets, although the top flight is still 22% lower than at the start of the decade, when the Footsie stood at a record 6930.
Britain's blue-chip stocks have gained despite ferocious turbulence on the financial markets, although the top flight is still 22% lower than at the start of the decade, when the Footsie stood at a record 6930.
Summary: Indian shares rebounded on Tuesday from two-month lows hit in the previous session as blue-chip stocks such as Reliance Industries gained on short-covering ahead of the expiry of June derivative contracts later this week.
The exchange will launch equity options for blue-chip stocks this year, starting with simulated deals before proceeding to real trading.
In the medium-term, the Dubai market may reach 2,200- 2,400 levels and any profit-taking should be seen as an opportunity to accumulate more blue-chip stocks," he added.
The Nikkei moved at slightly higher levels for most of the day as buying in blue-chip stocks offset profit-taking.
The FTSE Bursa Malaysia KLCI, which tracks the top 30 Malaysian companies on the local stock exchange, has placed more blue-chip stocks on the radar of foreign institutional investors as well as fund managers since it was implemented a year ago.
Those with long-term investment time frames can consider blue-chip stocks or mutual funds that specialize in them.
LONDON shares suffered heavy losses today as a reality check hit investors in the City and sent blue-chip stocks tumbling.
In a recent study of 25 blue-chip stocks across industries, Howell found that most were severely overvalued at today's prices and that current free cash flows cannot support most companies' current market prices.
A price weighted average of 30 actively traded blue-chip stocks, primarily industrial industry stocks that trade on the New York Stock Exchange.
Such funds tend to :include lots of blue-chip stocks from well-established companies that outpace the rest of the market.