Other Definitions
blue chip (dict)
blue chip (dict)
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Blue ChipA blue chip stock is the description of the stock of well-established companies having stable earnings and no huge liabilities. Most blue chip stocks pay regular dividends, even in times of worse than average business. 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. The term comes from the blue-colored disks, which are typically the most valuable, used in the game of poker. Examples (in 2004) are Shell (petroleum), Coca Cola (food) and IBM (IT).
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