Blue chip (stock market)

Blue chip (stock market)

A blue chip stock is the stock of a well-established company having stable earnings and no extensive liabilities. The term derives from casinos, where blue chips stand for counters of the highest value. [ [http://www.investopedia.com/terms/b/bluechip.asp Blue Chip ] ] Most blue chip stocks pay regular dividends, even when business is faring worse than usual.

The phrase was coined by Oliver Gingold of Dow Jones sometime in 1923 or 1924. Company folklore recounts that the term apparently got its start when Gingold was standing by the stock ticker at the brokerage firm that later became Merrill Lynch. Noticing several trades at $200 or $250 a share or more, he said to Lucien Hooper of W.E. Hutton & Co. that he intended to return to the office to “write about these blue chip stocks.” Thus the phrase was born. It has been in use ever since, originally in reference to high-priced stocks, more commonly used today to refer to high-quality stocks. [March 12th, 2008, Dow Jones internal news item "Ever Wonder How ‘Blue Chip’ Stocks Started?"] In contemporary media, Blue Chips and their daily performances are frequently mentioned alongside other economic averages like the Dow Jones Industrial Average.

ee also

*List of corporations by market capitalization

References


Wikimedia Foundation. 2010.

Игры ⚽ Нужен реферат?

Look at other dictionaries:

  • Blue chip — may refer to:* Blue chip (stock market), a certain type of security * Blue chip (sports), collegiate athletes who are targeted by professional sports teams * Blue Chip (Acoustic Alchemy album), an album by Acoustic Alchemy * Blue Chips , a movie… …   Wikipedia

  • stock market — I (Roget s IV) n. Syn. the market, the exchange, syndicate; see business 1 , market 2 . II (Roget s 3 Superthesaurus) n. stock exchange, stock brokerage, American Stock Exchange, Wall Street, New York Stock Exchange, NASDAQ. WORD FIND • agent who …   English dictionary for students

  • blue chip — A phrase used to describe shares of the highest quality and lowest risk. Not to be confused with blue blood, which merely indicates a prestigious background. Dresdner Kleinwort Wasserstein financial glossary Large and creditworthy company.… …   Financial and business terms

  • blue chip — Colloquial name for any of the ordinary shares in the most highly regarded companies traded on a stock market. Originating in the USA, the name comes from the colour of the highest value chip used in poker. Blue chip companies have a well known… …   Accounting dictionary

  • blue chip — Colloquial name for any of the ordinary shares in the most highly regarded companies traded on a stock market. Originating in the USA, the name comes from the colour of the highest value chip used in poker. Blue chip companies have a well known… …   Big dictionary of business and management

  • List of stock market indices — Commonly used stock market indices include:GlobalLarge companies not ordered by any nation or type of business (in alphabetical order).*BBC Global 30 *MSCI World *S P Global 100 *S P Global 1200 *Russell Global 10000 Launched 17/01/07 *FTSE CNBC… …   Wikipedia

  • Change in Share Price of Selected U.S. Blue-Chip Stocks — ▪ Table Change in Share Price of Selected U.S. Blue Chip Stocks1 (in U.S. dollars) Company Starting price January 2004 Closing price year end 2004 Percent change General Electric Co. 30.98 36.50 17.82 ExxonMobil Corp. 41.00 51.26 25.02 Microsoft… …   Universalium

  • stock — physical items ( inventory) that a business uses in its production process or has for sale in the ordinary course of doing business. Glossary of Business Terms Ownership of a corporation indicated by shares, which represent a piece of the… …   Financial and business terms

  • Stock — Ownership of a corporation which is represented by shares which represent a piece of the corporation s assets and earnings. The New York Times Financial Glossary * * * ▪ I. stock stock 1 [stɒk ǁ stɑːk] noun 1. [countable, uncountable] especially… …   Financial and business terms

  • stock — Synonyms and related words: Animalia, Broadway, ability, abundance, acceptation, accepted, acception, accommodate, accumulate, accumulation, accustomed, acquiescence, affiliation, afford, allotment, allowance, amass, amassment, ancestor, ancestry …   Moby Thesaurus

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”