What is a Blue Chip Stock?

A Blue Chip Stock is stock in a “Blue Chip Company.” The blue chip companies are the well-established, high-quality, big companies with stable earnings without much debt. They are on sound financial ground, the bedrock of American business, favored by investors, leaders in their fields, and usually pay regular dividends.

The blue poker chip is the most valuable, and that is how these stocks got their nickname. Coco-Cola, Intel and Exxon-Mobil are a few blue chip stock