Blue-chip - A term used to describe the stock of a company that is generally large, national, and has a long history of sustained earnings and dividend payments. The firm also usually has a reputation for superior management and high quality products. Shares may be regarded as a relatively low-risk investment due to its stability against large fluctuations. However, due to a strong level of public confidence in the companyâ??s record, share prices may be unusually high compared to that of other publicly traded firms.