LeoGlossary: Blue Chip (Stock)

A term derived from poker were the blue chips are the most valuable.

This is the stock that is considered low risk. It pertains to a company that has performed well over a long period of time. The consistency in the revenue along with profits make it high quality.

Blue chips stocks tend to be dividend plays, which increases their appeal. The consistency also sees buyers jump in when the market turns to risk-off.

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