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Blue Chips - Definition
Below, you'll find a definition of this investing term...

Definition: Blue chip stocks are stocks of well-established companies.  These would be companies like Wal-Mart, McDonald's, and Gillette.  Investments in these stocks are typically considered more conservative.  They got their name from the blue chip in poker, which is considered the most expensive chip.

TeenAnalyst Advice: Blue chips are good stocks to get started out with because we all know what these companies are and who their customers are.

Every diversified portfolio should contain at least a few blue chip stocks in it.  The majority of these stocks will still be around 30 years from now, as compared to smaller companies whose futures are unknown.

 

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Investing - Learn more about investing basics and strategies.

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