Blue chip stocks are referred to be the shares of companies that have stable returns and huge market capitalization. These companies have an extraordinary reputation among the other companies in a similar sector.
The reasons for high market prices and ultimately high market capitalization are their large size and well-established structures, a history of operating for decades, and making sound financial decisions. An example of a blue chip company is Amazon. It has a total market capitalization of $750 billion with a current share price of USD 3,267.45. It has over one million employees all over the world.
