What is a blue-chip stock?
A blue-chip stock refers to shares in large, globally recognized corporations that lead their respective industries. While these companies are pillars of the stock market, there’s no formal regulatory definition or specific financial threshold required to earn the ‘blue-chip’ label. Instead, it’s a market convention used by investors to identify high-quality, resilient businesses.
The name traces its origins to the game of poker. In 1923, Oliver Gingold of Dow Jones reportedly noticed several stocks trading at high prices and likened them to blue chips, which historically held the highest value in a poker set. Today, the name signifies prestige, stability and a track record of institutional strength.
