The name "blue chip" came about because in the game of poker the blue chips have the highest value.
Blue chip stocks are seen as a less volatile investment than owning shares in companies without blue chip status because blue chips have an institutional status in the economy. Investors may buy blue chip companies to provide steady growth in their portfolios. The stock price of a blue chip usually closely follows the country's Index ( ex SENSEX , S&P 100 etc ).
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