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In the world of investment and finance we often hear certain "buzz words" or popular terms being thrown around on a daily basis. For the uninitiated a lot of this talk may sound absurd or just plain confusing. While for some this may be like a second language it is also easy for the new investor to make bad choices as a result of not understanding what all this weird talk means. When used in reference to the stock market the term "blue chip" usually refers to stocks that are known as being in excellent financial shape. Blue chip stocks generally pay consistent dividends and are often favored by investors who look to these stocks as being leaders in their respective industry. Blue chip stocks are usually high priced stocks with a proven track record of growth and success in rough economic times as well as good. Blue chips stocks are often listed in Standard and Poor's 500 index (also called the S&P 500) as being among some of the best stocks to buy. Examples of what investors may call blue chip stocks contain companies such as Exxon-Mobile, Berkshire Hathaway, or Coca Cola. Oliver Gingold of Dow Jones was credited with coining the term sometime around 1923-24 when speaking in reference to several high priced stocks. The term "Blue chip" had originally come from the casino world where blue chips are usually known as being worth extremely large amounts of money. While blue chip stocks usually offer stability and high dividends they are as a result quite expensive and may not necessarily be for everyone looking to get into trading stocks and bonds. They are definitely some of the best options for those looking for low risk but at the same time it is important to diversify and not put all your eggs in one basket. As always, its best to consult with experts before making any huge financial leaps into the investment market. After all it's your money.