What it is:
How it works (Example):
Blue-chip stocks are shares of stock issued by companies which have a reputation for financial stability and a record of successfully weathering any economic condition. In addition to exceptional potential for long-term growth, blue-chip stocks traditionally display repetitive, solid earnings.
Examples of blue-chip stocks are General Electric (NYSE: GE) or AT&T (NYSE: T).
The name blue-chip stock is a reference to the most highly-valued chip in a poker game.