what is the meaning of blue chips in shares?

Answer 1

A blue chip stock is the stock of a well-established company having stable earnings and no extensive liabilities. Most blue chip stocks pay regular dividends, even when business is faring worse than usual. They are valued by investors seeking relative safety and stability, though prices per share are usually high. Typically, such stocks are perceived to offer reliable returns, low yield, and low risk. Many blue chips are components of popular indices, such as the Dow Jones Industrial Average and the S&P 500.

Alternately, blue chip stocks are sometimes defined as companies whose stocks have large market capitalization values (for example, over $1 billion.)

The term comes from blue-coloured poker chips, which are typically the most valuable. Examples are Royal Dutch Shell (petroleum), The Coca-Cola Company (food) and IBM (information technology). Before its total collapse in 2001, Enron was considered to be a blue chip stock.

Answer 2

A nationally known, properly-accepted and financially sound enterprise. Blue chips regularly sell extreme-high quality, critically standard products and amenities. Blue chip agencies are time-honored to climate downturns and function profitably in the face of inauspicious economic circumstances, which permits to make contributions to their long checklist of nice and good growth. The call "blue chip" got here approximately by way of fact in the interest of poker the blue chips have the optimal value. So, definite, i might say GlaxoSmithKline is a blue chip enterprise.

Answer 3

The term "blue chips" usually refers to a stock, but could in theory refer to any financial asset with potential risk. A blue chip stock is one that entails unusually small risk (risk being a subjective judgment). Stock that are considered "blue chip" are issued by large stable corporations like IBM or large petrochemical companies like ExxonMobil. And I just found a good website for educating investors
and people just getting started in investing..check it out
http://www.investopedia.com
And there's an article on about.com about the benefits of blue chip stocks
http://beginnersinvest.about.com/cs/bluechipstocks/a/aabluechipben.htm
good luck

Answer 4

The best or the most impotant stocks of the stock exchange. In NYSE, a few examples are GE, AMEX, General Motors, and so on.

Answer 5

Stock from a major company thats had positive earnings for a long period of time with no problems.

Answer 6

Accountants or average earners, working in the stock market.