What are blue chip stocks?

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Swatantra Kumar explains: The stocks of very large frontline companies that are part of the benchmark indices like sensex and nifty, have a long track record of strong performance and also have low volatility are called as blue chips. In some markets, in addition to these qualities to qualify as a blue chip, these stocks should also have a history of dividend payments. The term blue chip is derived from the gambling game of poker, in which blue-coloured chips are the most expensive ones among all the coloured chips.

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