Blue chips are the biggest and most stable of the market's stocks.
Blue chips, which are so named because in poker, the blue chips have the highest value, refer to the stocks of large, well-established, stable companies. Blue chips are financially stable, with modest but significant long-term growth, and they typically sell well-established products and services.
Because of their size and their development, blue chips are believed to be less volatile and therefore less risky than other investments. Their performance often tracks the S&P 500, which itself is made up of many of the most notable blue chips.
Recent Mentions on Fool.com
- U.S. Markets Taking Investors for a Ride Today
- 2 Things Every Coffee Drinker Should Know About Starbucks This Month
- Intel is Today's Top Stock on a Down Day for the Dow
- Why Boeing's Stock Shouldn't be Crushing the Dow
- Earnings Season And the Dow: An Early Look
- General Electric Company Boosts Debt by $3 Billion in "Opportunistic" Move