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What Is A Blue-Chip Stock?
By Seedly  •  December 16, 2019

Blue chip.

No, we are not talking about casino chips here.

Source: Giphy

(Ok, there are no blue chips in the gif, but you get my drift…)

What we are referring to are blue-chip stocks.

A blue-chip stock is something that’s generally well-recognised and has strong financial stability.

Blue-chip companies are considered to be the best of the lot, just like a casino’s highest valued chips, which are blue.

Since blue-chip stocks are perceived to be of quality, they are rarely sold cheaply.

In Singapore, all the 30 stocks that belong to the Straits Times Index are considered blue-chip stocks.

Some of the 30 stocks are well-known names such as:

DBS Oversea-Chinese Banking Corp (OCBC) United Overseas Bank (UOB) Singapore Telecommunications (Singtel) CapitaLand ST Engineering Genting Singapore ComfortDelGro Singapore Airlines Singapore Press Holdings (SPH)

One thing to note is that blue-chip stocks are not sure-win investments, as it’s

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By Seedly
Launched in 2016, Seedly helps users make smarter financial decisions with its budgeting app which allows its 40,000 users to sync up their financial accounts and better manage their cash-flow. Last year, we introduced a new community feature which allows users to crowdsource knowledge from peers before making a financial decision.
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