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What is a blue chip organization?

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Quick Answer

A blue chip organization is a publicly-traded company that is financially sound and consistently performs well on the stock market, according to Investopedia. The name comes from the game of poker, in which blue chips represent the highest monetary value on the table.

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Full Answer

Blue chip companies include brands like Disney, Google and IBM, as reported by Inc.com. Most blue chip companies have existed for several years, but start-ups that enjoy immediate success might qualify as well. Many new investors start with blue chip stocks because they represent less risk. However, any company, regardless of its successful track record, can lose money in the stock market.

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