Blue chips

Blue chips are stocks of well known companies that are internationally recognized. These sell widely and are financially stable. Usually blue chips companies sell high quality, widely used and sold products or services. They are generally more volatile that other stocks and have less risk at failure; they demonstrate the ability to pay dividends in both good and bad times. Generally, all Dow Jones stocks are considered blue chips.

The name blue chip comes from the game of poker, where the blue chips have the highest value. Similarly, blue chip stocks are considered to be more valuable.