A blue chip stock is that of a well-established company which is considered stable and which pays regular dividends. Typically, the term ‘blue chips’ is used to refer to the constituents of the major stock indices. The term derives from the high value of blue casino chips.
Blue Chip
Related Terms
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Divergence is a concept in technical analysis that describes when an asset’s price is moving in the opposite direction of another piece of data, usually a technical indicator. For example, if the...
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Yield curve control (“YCC”), also sometimes called interest rate pegs, is where bond yields are set by the central bank. It is considered a type of unconventional monetary policy. Under yield curve...
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The Dow Theory is widely considered one of the earliest forms of technical analysis. It was originally promulgated by Charles H. Dow who noticed that stocks tended to move up or down in trends, and...
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Risk sentiment is a term used to describe how financial market participants (traders and investors) are behaving and feeling. What traders choose to buy or sell means balancing how much they are prepared to lose with how much they hope to earn. You can look at risk sentiment as the expression of traders’ and investors’ willingness to […]
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Liquidity describes the extent to which an asset can be bought and sold quickly, and at stable prices, and converted to cash. Liquidity refers to how quickly and at what cost one can sell an asset,...