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Blue-Chip Index

Categories: Index Funds, Metrics

This buzzy buzzword at Wall Street cocktail parties is a stock index that tracks shares of publicly-traded companies which are considered to be top performers.

They have a long history of growth, and solid margins, and usually pay a dividend. The stocks in this index are perceived as being the best of the best. Used to be the Dow, but then America became a Technocracy, so "blue chip" changed from U.S. Steel and Ford...to Google and Amazon.

Basically, the Blue Chip Index is a list of stocks from companies you want a piece of, to have and to hold forever. The stocks you want to bring home to your parents.

Related or Semi-related Video

Finance: What is a Blue Chip?18 Views

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Finance a la shmoop, what is a blue-chip? Alright people think kids, plastic, poker

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chipset, remember those cheap plastic poker chips? [Someone looking at their cards]

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Yeah the the whites were supposed to be a penny [The money equivalents of the chips are shown]

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the Reds were a nickel and the Blues the most highly valued chips in the set well

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they were worth a dime and that's where the name came from the highly valued

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blue chip and it refers to high-quality, highly valued companies Disney, Coke and [Logos of the blue chip companies]

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in today's world Google, Amazon, Shmoop alright maybe not Shmoop. All right but

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the rest of those companies are blue chips which have a long track record of [Blue chip stamp]

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growing profits if not revenues for a very long period of time and they have

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corporate cultures that are all about winning [People playing poker with their heads replaced by briefcases with company logos on them]

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whatever game they're in so go blue, well sure them too... [Football player is tackled]

Find other enlightening terms in Shmoop Finance Genius Bar(f)