Blue Chip

Companies listed on the Stock Exchange that are large and well established are often referred to as Blue Chips.

The term “Blue Chip” is a term used to typically describe a large, well-established and financially sound company listed on the Stock Exchange. These are companies with a good reputation, that are well established, typically with a long history and possibly considered as a market leader in their industry. Their business is likely important to the overall economy and probably well known or a household name, producing dependable earnings year after year, often paying regular dividends. Blue Chips often are constituents of the main Index of the exchange.