Mar 09 2011

What is a blue chip stock?

Category: Finance


A “blue chip stock” is a designation that is often given to companies that have a historical track record of reliable earnings, growth, and management. They are typically leaders in their respective sectors and have demonstrated the ability to perform during both strong and weak economic cycles. They are generally considered safe investments. The Dow Jones Industrial Average (DJI) is an index that is made up of 30 blue chip stocks.

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