Blue Chip

A blue chip is a share in a large, safe, prestigious company, of the highest class among stockmarket investments. A blue-chip company would receive the appellation through being well-known, having a good track record of dividend payments and skilled management.

Be aware this does not mean that all stocks in the FT-SE 100 index are blue chip stocks. Equally it does not mean there are no blue chip stocks outside the FT-SE 100.

The term is American in origin and comes from the card game poker where bluechips were the highest-valued chips in the game - this may be ironic depending on how you view the stockmarket.

See Also: Online share dealing service Stockmarket Centre

Last Updated: May 2007 © Moneyextra.com

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