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Answer Posted / g.ravi
Blue Chip companies are nationally recognized, well-
established and financially sound company. Blue chips
generally sell high-quality, widely accepted products and
services. Blue chip companies are known to weather
downturns and operate profitably in the face of adverse
economic conditions, which helps to contribute to their
long record of stable and reliable growth. The name "blue
chip" came about because in the game of poker the blue
chips have the highest value. Blue chip stock is seen as a
less volatile investment than owning shares in companies
without blue chip status because blue chips have an
institutional status in the economy. The stock price of a
blue chip usually closely follows the S&P 500.
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