Connect With Us
Register
Login
Blue chip stock definition
A blue chip stock is a share in a large, well-established company with a strong market position, a reliable earnings record, and a large market capitalisation. These companies are usually leaders in their industry and widely followed by investors and analysts.
Blue chip stocks tend to have strong balance sheets, stable cash flow, broad customer bases, and long operating histories. Many also pay a dividend, though no dividend is ever guaranteed.
Blue chip stocks generally carry lower risk than smaller or newer stocks, but they still fall in a market downturn. Because they hold heavy weight in major stock indices, a large move in the blue chips can pull a whole index with them.
Blue chip stock Example
You buy shares in a large global company such as Apple, Microsoft, or Coca-Cola.
These count as blue chip stocks because of their strong brands, large market values, and established business models. When the broader market turns volatile, investors often hold blue chips for relative stability and long-term quality.
The information provided on this website is of a general nature only and does not constitute personal financial advice. Before acting on any information on this website, you should consider the suitability of the information in relation to your objectives, financial situation and needs. Investing in CFDs and FX Margin Contracts carries significant risks and is not suitable for all investors. You may lose more than your initial deposit. You do not own, or have, any interest in the underlying asset. We recommend that you seek independent advice and ensure you fully understand the risks involved before trading. It is important that you read and consider the disclosure document before you acquire any product listed on the website. The information and advertisements offered on this website are not intended for use by any person in any country or jurisdiction where such use would be contrary to local laws and regulations. The Products and Services offered on this website are not intended for residents of the United States, Malaysia and Thailand.
TMGM is authorized and regulated in various jurisdictions.
Trademax Australia Limited, trading as TMGM, is regulated by the Australian Securities and Investments Commission (ASIC), AFSL no. 436416 and is located at Level 28, One International Tower, 100 Barangaroo Avenue, 2000 Sydney, NSW Australia.
Email: support@tmgm.com.au
Trademax Global Limited, trading as TMGM, is authorized and regulated by the Vanuatu Financial Services Commission (VFSC), registration number 40356 and registered at 1276, Kumul Highway, Port Vila, Vanuatu, Republic of Vanuatu.
Email: support@tmgm.com
Trademax Global Markets (SE) Limited, trading as TMGM, is authorized and regulated by the Financial Services Authority (FSA) of Seychelles, with license number SD224. The company is registered at Office No 13, Providence Estate ABIS Centre, Mahe, Seychelles.
Email: support@tmgm.com
Trademax Global Markets (International) Pty Ltd, trading as TMGM, is authorized and regulated by the Financial Services Commission, Mauritius (FSC) with license no. GB22201012, and registered at 33, Edith Cavell Street C/o IQ EQ Fund Services (Mauritius) Ltd Port Louis, 11324 Mauritius.
Email: support@tmgm.com
Copyright © TMGM. All rights reserved