blue-chip company

A company that is very strong financially, with a solid track record of producing earnings and only a moderate amount of debt. A blue-chip company also has a strong name in its industry with dominant products or services. Typically, blue-chip companies are large corporations that have been in business for many years and are considered to be very stable. However, there is no formal requirement for being a blue chip. Often, blue-chip companies are found in the Dow Jones Industrial Average.