What is a Blue Chip?

Have you come across a word such as this during your day to day activities?
Well, in our present day world, a blue chip is referred to as companies with a proven track record. 

To be a blue chip company, you must be recognized nationally or even globally, you must be able to be well established and very importantly, you must be financially sound. 

As a blue chip company, your goods and services must be of high-quality and must be widely accepted, this should also include operating profitably even in adverse economic conditions. This in turn provides the public with a sense of trust and reliability of the company whereby building a great reputation.

Key Takeaways:

• A blue chip company is recognized globally as being stable and  reliable against all odds.
• A blue chip stock should be safer to invest in, since it should be less volatile.
• A blue chip stock can still suffer volatility