What's the difference between stocks and blue chip stocks?

2 Answers

  • Anonymous
    9 years ago
    Favorite Answer

    A blue chip stock is a nick-name given to a category of stocks that have a long history of solid earnings through good times and bad. Some examples of blue chip stocks are Proctor and Gamble, Walmart, McDonalds, Exxon-Mobile, General Foods. At one time GM was considered a blue chip stock but incompetent management destroyed the company. Another that was once considered a blue chip stock was US Steel company. Now it is pretty much a has been, but it does still do business and has not yet gone bankrupt as GM did, but it is a mere shadow of its former self.

    So even though a stock might today be considered a blue chip, as time progresses there is a good possibility that it will eventually fall from the ranks.

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  • Ryan M
    Lv 7
    9 years ago

    Nothing. Blue chip stocks ARE stocks. Being "blue chip" refers to the company itself and has NOTHING to do with being a different type of stock.

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