Why Are Some Stocks Called Blue Chips?

Why not white chips? Why not green chips? Or red chips? If you are a new stock market investor you may be wondering why there are companies or stocks that are called blue chips.

Okay, I’m not into gambling but it seems like the history of the term “blue chips” actually came from game of poker. In this type of card game, the blue chips are considered to have the highest value. Having blue chips in your game means you are playing with the safest bets.

In the stock market, blue chip stocks are those that are very much likely to make an investor earn money over time.  They are the elites and the most popular companies listed publicly. But what really are blue chip stocks and how do we recognize one? Continue reading Why Are Some Stocks Called Blue Chips?