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Blue Chips
Term category: Stocks
In 10 words or less: "Blue chip" is a term used to describe a highly-respected and established company.

Definition: Blue chip stocks are stocks of well-established companies. These would be companies like Wal-Mart, McDonald's, and Starbucks. 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.

StockJargon 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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