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Investing & the Stock Market vocabulary · Stocks & Shares

Blue-chip stock

Meaning in investing & the stock market, with examples

/ˈbluː tʃɪp ˌstɑːk/nounCore term

In investing & the stock market, blue-chip stock means: A share in a large, well-known and financially strong company with a long record of stable earnings, often paying regular dividends.

In Turkish: birinci sınıf hisse, büyük ve köklü şirket hissesi, blue chip hisse

How it is used

Used in news and investment talk for the biggest and most established listed companies, usually those in the main index. Writers say blue chips led the market or that investors moved into blue-chip names. Often just 'blue chips'.

Example sentences

  1. In uncertain times, many investors prefer blue-chip stocks that pay steady dividends.

  2. Blue-chip stocks held up well while smaller companies fell sharply.

Common collocations

  • blue-chip stocks
  • blue-chip company
  • blue-chip index
  • blue chips led
  • market capitalizationThe total market value of a company's shares, calculated by multiplying the share price by the number of shares in issue.
  • small-capDescribing a company with a relatively small market capitalization, or its shares. The exact limit depends on the market and the index provider.
  • growth stockA share in a company whose sales and profits are expected to grow much faster than the average, often paying little or no dividend because it reinvests its earnings.
  • dividendA part of a company's profit that it pays to its shareholders, usually in cash and usually a fixed amount for each share.
  • indexA number that shows how the prices of a selected group of shares or bonds change over time, used to measure a whole market or sector.

More terms: Stocks & Shares

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This page explains English vocabulary for learners. It is not financial advice.