Tuesday, 19 February 2013
Blue-Chip Index
A stock index that tracks the shares of the top-performing publicly
traded companies. Blue-chip stocks represent companies that are
financially stable, well established and provide good returns for
investors, making them desirable investments. Because blue-chip
companies tend to perform similarly to the economy as a whole, the
performance of a blue-chip index may be considered a gauge of an
industry's or region's economic strength. It is for this reason that
news reports typically mention how a major blue-chip stock index, such
as the Dow Jones Industrial Average (DIJA), performed that day.
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