blue-chip company

Blue-chip company

Used in the context of general equities. Large and creditworthy company. Company renowned for the quality and wide acceptance of its products or services, and for its ability to make money and pay dividends. Gilt-edged security.

Blue Chip Stock

Stock in a well-known and highly respected publicly-traded company. Blue chip companies are usually financially sound and are thought to be relatively low-risk investments. They tend to be less volatile than other companies and to provide solid growth to portfolios. Examples in the United States include General Electric and Coca-Cola. Indices such as the Dow Jones Industrial Average tracks blue chip stocks.

‘blue-chip’ company

a large well established JOINT-STOCK COMPANY, with considerable assets whose SHARES investors regard as a low-risk investment.