Blue chip comapnies are publicly traded companies with long histories of operating with successful business models and a traditionally earning good profits for their investors.
They are usually pricey stocks. They're not prone to run up in value 100 points in a single trading session. They're also not prone to sudden drops in value. At the end of the year, your investment in blue chips means you will not be likely to have lost any money, although you may need to hld the stock for a long time to earn a Big return...
IBM, General Motors, General Electric, stocks like those.
2007-08-31 02:16:54
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answer #1
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answered by chocolahoma 7
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A blue chip company (like IBM) is a usually a large established company with a large market capitalization. It is perceived to be more stable and less risker than others, hence considered to be a "premium" in its class. Per the link below, the "blue-chip" term comes from poker where blue chip are typically the most valuable.
2007-08-31 02:16:29
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answer #2
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answered by Face T 7
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Blue Chip companies are those that are established on the stock market. Examples of this would be General Motors, Proctor & Gamble, Coca-Cola, IBM, etc.
According to Wipedia, their stock will meet the following criteria:
"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 $10 billion.)"
Gregg
http://www.WallStreetAlternatives.net
2007-08-31 02:15:05
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answer #3
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answered by Teahupoo 2
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I can't seem to recall the blue chip moniker, but I believe it would have something to do with the value of a blue poker chip in comparison to the wealth of the company.
A blue-chip company is generally one that has been around for a very long time, with a good track record of earnings and profits for their investors. These companies are large enough to weather market recessions and periods of tough times due to their market size and leadership. Investors like them because it gives you a good investment in stocks with a lesser amount of risk.
2007-08-31 02:14:14
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answer #4
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answered by Anonymous
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These are companies that make those delicious chips for Jet Blue
2007-08-31 02:11:59
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answer #5
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answered by thomsonthomas1978 2
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It's a new kind of chip they have at Mexican restaurants made from blue corn tortillas. They taste the same so don't pay extra.
2007-08-31 02:11:20
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answer #6
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answered by nitty b 3
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