Blue chip stocks

From Financial Literacy Wiki

Blue Chip Stocks are stocks of a well-established company having stable earnings and no extensive liabilities. The term derives from casinos, where blue chips stand for counters of the highest value. Most blue chip stocks pay regular dividends, even when business is faring worse than usual.

Blue Chips and their daily performances are frequently mentioned alongside other economic averages. They are usually characterised by their stock prices which are usually a few dollars compared to penny stocks. And the business of these companies are stable as compared to new businesses where their chances of going bankrupt is relatively higher.