What Is A Blue Chip Company?

To understand a blue chip company, the first thing you shall know is the meaning of the term ‘blue chip’, this word comes from the game of poker, in which blue chip are the highest value pieces. Here it symbolizes same and more, with intending that a blue chip company are stable, profitable and successful companies. According to a definition, “A blue chip is a nationally recognized, well-established, and financially sound company. Blue chips generally sell high-quality, widely accepted products and services.” Broadly speaking blue chips are those companies which can resist bad times and gives a sure return on your investment, they could be called the safest investment stocks as they operate profitable even in the adverse economic condition.