Blue-chip stocks are the shares of companies that are well-known, financially stable, and have a long history in their industry. Because the companies that are considered blue chip change over time, the exact definition of what is required for blue-chip status can be ambiguous. A blue chip company, on the other hand, will be at or near the top of its industry, will be listed on a recognised index, and will have a well-known brand.

Blue-chip stocks are shares of large, well-established, and financially stable companies with a history of reliable performance. These firms are industry leaders, often household names like Apple, Microsoft, or Coca-Cola, known for strong brand recognition and consistent profitability.

Blue-chip stocks are considered low-risk investments due to their ability to withstand economic downturns and pay steady dividends. They typically have a large market capitalisation, high liquidity, and a track record of stable earnings growth. While they may not offer explosive returns like smaller stocks, they provide long-term stability and are a core holding in many portfolios. Investors, including pension funds and conservative traders, favour blue-chip stocks for their safety and dependable returns.