What does blue chip mean?

Blue chip refers to those stocks with good performance and relatively stable development. After long-term efforts, these enterprises have strong comprehensive competitiveness and core competitiveness, as well as high market share, stable profit growth and high market visibility. In different countries, the specific judgment of blue chip is different.

The main feature of blue chip is 1, which has high investment value: blue chip has advantages in capital, market and reputation, and can resist and adapt to various market changes. On the whole, the share price of blue-chip stocks is relatively stable, and shows a staged upward trend. Therefore, blue-chip stocks are favored by investors, especially those engaged in long-term investment;

2. The rate of return is high and relatively stable: the return on investment is quite rich and stable, and the stock price fluctuates little. The bull market is coming, and it won't be the first to rise. Often when other stocks continue to rise, blue-chip stocks will rise slowly; When short positions come, investment stocks collapse first, and other stocks plummet. Blue-chip stocks tend to stick to their positions rather than fall excessively, which has typical defensive characteristics.