Blue Chip

When referring to a company, what does the term 'Blue Chip' mean??

Also, does anyone know if GlaxoSmithKline is a Blue Chip company?

Thanks.

Generally speaking blue chip companies are the companies which are listed on the stock exchange and have established company and financial structures which generally have strong management. Usually these are the large public companies which hold relatively safer investment opportunities.

A blue chip stock is the stock of a well-established company having stable earnings and no extensive liabilities. The term derives from casino, where blue chips stand for counters of the highest value. Most blue chip stocks pay regular dividends, even when business is faring worse than usual. They are valued by investors seeking relative safety and stability, though prices per share are usually high. Typically, such stocks are perceived to offer reliable returns, low yield, and low risk.

A blue chip company is a nationally recognized, well-established and financially sound company. Blue chips generally sell high-quality, widely accepted products and services. Blue-chip companies are known to weather downturns and operate profitably in the face of adverse economic conditions, which helps to contribute to their long record of stable and reliable growth.

GSK is definately a blue chip company - if going there to enquire about a role just say something like 'I aspire to work at an internationally renowned blue chip company' or something similar - that will impress them!