My Second Blog: What is Blue Chip & why this term is used to define the quality of stocks ?
The term "blue Chip stock" comes from 'the world of poker, where the highest value chips are blue surpassing white chips and red chips, so it is an informal term for the most reliable and valuable companies on the market.
Blue Chip stocks refer to stocks of large, financially sound, and well-established companies with a long history of stable earnings growth, dividend payment, and a reputation for quality management, products, and services. These companies are leaders in their respective industries and are considered to be less volatile and more reliable investments compared to other stocks. Blue chip companies typically have a market capitalization of over $10 billion and include names like Apple, Amazon, Johnson & Johnson, Procter & Gamble, Coca-Cola, Microsoft, Infosys, Reliance Industries LTD., ITC Limited, etc.👈
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