Finance glossary
Blue Chip Stock
Definition
Shares of a large, established, financially sound company.
Blue chip stocks are shares of big, reputable companies with long records of stable earnings and often dividends, such as household-name firms. They are considered relatively safe and resilient in downturns, anchoring many conservative portfolios, though growth can be slower.
In a sentence
He anchored his portfolio with blue chip stocks known for steady earnings and dividends.
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