Video: What Is a Blue Chip Stock?

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A blue chip stock is the nickname for a stock from a safe, very large company that has been around for a long time and is in good standing. Make gradual increases and lower potential losses by investing in blue chip stocks with advice from an investments manager in this free video on investing.

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Video Transcript

Okay. What is a blue chip stock? A blue chip stock is a nickname for stock that is thought to be very safe, very large company that's been around for good, long time and is in very good standing. So you'll find companies such as General Electric, which are, you know, big global companies, Coca-Cola, Wal-Mart, Exxon, Mobil. So some of the largest names out there on the market. So...and they're usually names that you'll know -- they're household names. They're names that you see when you're out, you know, driving in your car. So a blue chip stock is really going to be a very, very large company that seems that...in good standing, good management, has a decent dividend return, and is something that if you held it for a long period of time, you would assume that your money would have a very slow, gradual increase and your potential losses and your risk will be...would be minimum.

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What Is a Blue Chip Stock?

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