What Are The Requirements For Blue Chips To Become Blue Chips?

What is blue chip stock?

It refers to a stable earnings record, which can distribute regular dividends and is recognized as a common stock of a company with outstanding performance. It is also known as "blue chip stock".

The blue chip code comes from the blue chip code used in gambling devices.

Blue chip codes usually have high monetary value.

The basic supporting conditions for becoming a blue chip stock are:

(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.

Overseas

On the other hand, investors call the blue chip stocks the major companies that occupy an important dominant position in their industry, perform well, and have a lively turnover and good dividends.

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".