What is a blue chip?

1. Blue-chip stocks refer to large-scale and traditional industrial stocks and financial stocks with long-term and stable growth. The term "blue chip" comes from western casinos. In western casinos, there are three colors of chips, of which blue chips are the most valuable. In the securities market, companies with good operating performance and stable and high cash dividend payment are usually called "blue chips".

Generally speaking, people think that "blue chip" is the first-class and best stock, but not necessarily. The definition of blue chip on the website of American Stock Exchange is: the so-called blue chip refers to the stock of an enterprise that has won the national reputation by the quality of its products or services and the profitability and profitability reliability beyond the economic boom. It sounds circuitous, but we can find several key words from it: well-known big companies, stable profit records, dividend growth, management quality and product quality. There is a vague concept. In fact, there is no only accurate definition of blue chip. It exists in some indexes, securities analysts' reports and some consumers' minds.

3. The understanding of blue-chip stocks can't be limited to the word "shares", which carries "industry and people's livelihood" and even "national glory and dreams". Therefore, all blue chips generally appear in the pillar industries of the country, and blue chip companies are also leading enterprises in the industry.