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Blue chips
11 august 2021
Companies whose shares are traded on a stock exchange and are part of the largest index for that stock exchange. The leading index of the London Stock Exchange is called FTSE100. It includes 100 of the largest companies whose shares are traded on this exchange. These companies are called blue chips in slang.
Usually this type of companies are large, well established in their niches and often pay stable dividends. Due to their strong market position, they are often considered less risky than other smaller companies.
