The basics
Blue chip
A blue chip is the stock of a large, solid, well-known and stable company, a leader in its sector.
A blue chip is the stock of a large, solid, well-known and stable company, a leader in its sector.
Blue chips are seen as less risky and more liquid than small stocks. They usually move more slowly, which appeals to cautious investors but offers less range for day traders.
A large company that has existed for decades, with steady profits, is a typical blue chip.
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