When trading stocks, you will always hear some stock market terms, and blue-chip stocks are one of them. For newcomers to the stock market, they don't know much, so what does blue chip mean? What is a blue chip? I have prepared relevant contents for your reference.

Blue-chip stocks generally refer to the stocks of companies with good operating performance, long-term stable growth, large scale and high stability in cash dividend payment. In casinos, there are three colors of chips, and blue chips are the most valuable. Later, people used this jargon in the securities market to derive blue chips.

There are many types of blue chips, which are generally divided into: first-line blue chips, second-line blue chips, blue chips with excellent performance, large-cap blue chips and blue-chip funds.

Take the first-tier blue-chip stocks as an example: generally speaking, it refers to stocks with low prices, good mass base, stable performance, large liquidity and large total share capital, that is, stocks with greater weight.

Take the second-tier blue-chip stocks as an example: overall, it is slightly weaker than the first-tier blue-chip stocks in terms of market value, industry status and popularity.

Take blue-chip stocks with excellent performance as an example: generally speaking, it refers to stocks recognized by companies with excellent performance, rich dividends and steady growth in the industry.

Take large-cap blue-chip stocks as an example: generally, it refers to listed companies with relatively large equity and market value, but it should be noted that all large-cap stocks can be called blue-chip stocks.

As can be seen from the above, there will be differences between different types of blue chips. When investing, we should pay attention to tracking the performance of outstanding industry leaders and invest when their share prices are undervalued.

I hope the above content can help everyone ~