Blue Chip Definition

Blue Chip

According to the New York Stock Exchange, a blue chip is stock in a corporation with a national reputation for quality, reliability, and the ability to operate profitably in good times and bad.

From the investor’s perspective, a blue chip is a stock or shares in a company that in addition to having proven abilities, rewards the shareholders handsome dividends regularly, without break, issues bonus shares at regular intervals and generally protects the interests of the investors through conservative management policies like not contracting debt at all are very small debt and so on.