blue chip
Blue chip (noun) means a share in a large, long-established company that is widely known, financially solid and has a long record of trading; also the company itself. Example: “The index is made up mostly of blue chips and a handful of newer firms.”
How to Use Blue chip
Learner’s notesIn plain EnglishA big, well-known, solid company — or its shares.
Neutral in finance; outside it, the adjective is a general compliment meaning top quality, as in blue-chip credentials.
Two words as a noun, hyphenated before a noun: he bought blue chips, but she has a blue-chip portfolio.
Trace the full origin ↓Fill the Gap
Can you complete this real example?
The index is made up mostly of _____ and a handful of newer firms.
Etymology
From the blue chip, traditionally the highest-value counter in poker.
Synonyms
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Frequently Asked Questions
What makes a company a blue chip?
There is no official register. The label is applied to companies that are large by market value, well known, long established and consistently profitable, and that usually appear in a country's main share index. Because the criteria are informal, lists differ between sources, and a company can lose the description if its position weakens.
Why is it called blue chip?
The phrase comes from poker, where the blue counter has traditionally been worth the most. It was carried over to the stock market to describe the shares regarded as the most valuable and dependable.
Are blue chip shares safe?
Blue chip describes size and standing, not safety. Large, established companies can and do fall in value, cut dividends or fail, and the label makes no promise about future performance.