Blue Chip

A nickname for high-value companies (like the actual blue chips if you’ve ever played poker). “Blue chips” are the big guys, like McDonald’s and Nike. They are considered the biggest, strongest, most robust stocks of the bunch. They are often considered trendsetters: where the blue chips go, so goes the market. Examples of blue chips are the thirty stocks that make up the mighty, mighty Dow Jones Industrial Average, or “the Dow.” (See also: The Dow, S&P 500)

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