Stock Terms: What Are Blue Chips?

The word "blue chip" is derived from gambling devices.

(1) during the depression, the company could formulate plans and measures to ensure the development of the company;

(2) during the boom period, companies can maximize their profits.

(3) during the inflation period, the company's actual surplus can remain unchanged or increase.

Blue chips refer to many long-term, steady growth, large, traditional industrial stocks and financial stocks.

The characteristics of such listed companies are excellent performance, stable returns, large scale of capital stock, good dividends, stable stock price and good market image.

In the overseas stock market, investors call those big companies that occupy an important dominant position in their industry, excellent performance, active pactions and good dividends as blue chips.

The word "blue chip" is derived from Western gambling houses.

In Western casinos, there are two kinds of chips, of which blue chips are the most valuable, the red chips are the second, and white chips are the worst.

Investors use these jargon to stock.

General Motors Corporation, Exxon Corporation and DuPont chemicals company are all "blue chips".

Blue chips are not static.

The ranking of blue chips will also change with the change of company's management and economic status.

According to the famous Forbes magazine statistics, only 43 of the 100 biggest companies in 1917 are still listed in blue chips.

In the Hongkong stock market, the most famous blue chip stock is "HSBC Holdings", one of the largest commercial banks in the world.

The "Changjiang industry" with Chinese capital background and "CITIC Pacific" under the Chinese capital background are also among the blue chips.

Although the stock market in mainland China has a short history, it has developed very rapidly.