Question: What is a Blue Chip
Answer: A "blue chip" is the nickname for a stock that is thought to be safe, in excellent financial shape and firmly entrenched as a leader in its field. Blue chips generally pay dividends and are favorably regarded by investors. A few examples of blue chips are Wal-Mart, Coca-Cola, Gillette, Berkshire Hathaway and Exxon-Mobile.
Blue chip stocks are sometimes referred to as bellwether issues.
For more information, read our What Are Blue Chip Stocks?. You may also want to read 101 Things Every Investor Should Know About Stocks: A 3 Minute Guide to Understanding the Stock Market.
If you are interested in even more in-depth information about investing in blue chip stocks, read The Benefits of Owning Blue Chip Stocks and Where Did the Term Blue Chip Originate?.
