Investing Dictionary
Basics

What is Blue Chip Stock?

A large, stable, well-known company with a long track record

Full Explanation

Blue chip stocks are shares of big, reputable companies — think Apple, Johnson & Johnson, or Coca-Cola. They're not the fastest growers but they're reliable and often pay dividends.

Pro Tip

The term comes from poker — blue chips are the highest-value chips.

Related Basics Terms

Pre-Market Trading

Trading that happens before the market officially opens

Dividend

Cash a company pays you just for owning their stock

Penny Stock

A very cheap stock, usually from a tiny or risky company

Mutual Fund

A pool of money from many investors managed by a professional

View all Basics terms →

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