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noun

blue chip

BLOO 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.”

noun
1
finance 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.
"The index is made up mostly of blue chips and a handful of newer firms."
"After the sell-off he moved what was left into blue chips."
adjective
1
general, business Describing a company, share or client of the highest standing and reliability; by extension, describing anything regarded as of the very best quality.
"The agency has a blue-chip client list."
"She joined a blue-chip law firm straight out of university."

How to Use Blue chip

Learner’s notes

In plain EnglishA big, well-known, solid company — or its shares.

When to use it

Neutral in finance; outside it, the adjective is a general compliment meaning top quality, as in blue-chip credentials.

Memory tip

Two words as a noun, hyphenated before a noun: he bought blue chips, but she has a blue-chip portfolio.

Trace the full origin ↓
Easily confused with
penny stock growth stock large cap gilt
Common pairings
blue chip stocks blue-chip company blue-chip client blue-chip index
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Test yourself on “blue chip” A quick quiz — meaning, synonyms & usage

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.

Origin: English

large cap household name leading share bellwether stock top-tier first-rate prestigious gilt-edged premier

Antonyms

penny stock small cap second-rate speculative

Related Words

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.

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Definitions: FreeDict original editorial · etymology from FreeDict original editorial