blue-chip company

blue-chip company definition - finance
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.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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