Blue chip stocks are prime stocks with a high market capitalization value, meaning they are exceptionally valuable.
Typically, these stock are issued by multi-national corporations and their stock rates remain relatively stable.
They are a favorite among institutional investors because of the “security” they provide.
Blue chips are listed on the most important stock exchanges and have a major impact on indexes.
Examples of blue chips in Switzerland (SMI index): Credit Suisse, UBS, Novartis, Nestlé, Geberit, Hoffman La Roche.