Blue chip meaning in English

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Definition

(a) blue chip (company): (a company) which is very respected, trusted, valuable or internationally renowned idiom

Examples

"But I thought you only invested in blue chip companies."

Exercise 1

"I thought you only invested in blue chip companies"

What is a "blue chip company"?

Any company listed on the American Stock Exchange.

A high-tech company, traditionally based in "Silicon Valley", near San Francisco.

A well known and reliable company with a long-history of sustained earnings.

I don't know

"I thought you only invested in blue chip companies"

What is a "blue chip company"?

Any company listed on the American Stock Exchange.

This is incorrect. Not all companies listed on the American Stock Exchange are "blue chip".

A high-tech company, traditionally based in "Silicon Valley", near San Francisco.

This is incorrect. High-tech companies based in "Silicon Valley" might make "computer chips", but they are not necessarily "blue chip" companies!

A well known and reliable company with a long-history of sustained earnings.

This is correct. A "blue chip company" is a major company renowned for the quality and wide acceptance of its products or services. "Blue chip stock" often sells at a high price because it is viewed as a safe investment with good dividend payments (in the long term). Coca-Cola, Disney, Intel, and IBM are examples of blue chip companies.

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