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StockCram is not a broker-dealer, investment adviser, or financial institution. All content is for educational and informational purposes only and should not be construed as personalized investment advice. Consult a qualified financial professional before making investment decisions. Past performance does not guarantee future results.Simple Definition
Stock from a large, well-established, financially stable company.
Why It Matters
Blue chips are the 'too big to fail' companies of the stock market. Think Apple, Johnson & Johnson, Coca-Cola, Walmart. They've survived recessions, wars, and market crashes. They may not double overnight, but they're less likely to go to zero. Many pay reliable dividends and form the backbone of retirement portfolios.
Key Points
- The term comes from poker - blue chips were traditionally the highest-value chips
- Most Dow Jones 30 stocks are blue chips: Microsoft, Visa, McDonald's, Nike
- Lower risk, lower reward - blue chips typically grow slower than small companies but are more stable
Related Terms
Common Questions
Stock from a large, well-established, financially stable company. Blue chips are the 'too big to fail' companies of the stock market. Think Apple, Johnson & Johnson, Coca-Cola, Walmart.
Blue chips are the 'too big to fail' companies of the stock market. Think Apple, Johnson & Johnson, Coca-Cola, Walmart. They've survived recessions, wars, and market crashes. They may not double overnight, but they're less likely to go to zero. Many pay reliable dividends and form the backbone of retirement portfolios.
The term comes from poker - blue chips were traditionally the highest-value chips
Most Dow Jones 30 stocks are blue chips: Microsoft, Visa, McDonald's, Nike
Lower risk, lower reward - blue chips typically grow slower than small companies but are more stable