Are there any other kinds of "chips" other than "blue chips" (stock market terms) ?

Question

what is a mutual fund, and what does a morningstar rating mean?

What is morning star?

Answer 1

Yes, there are other “chips,” but the terms are not widely used.

“Light blue chips” are companies that are smaller than blue chips and are considered to be potential winners as the “blue chips of the future.”  Both blue chips and light blue chips are generally considered to have outstanding financials positions with manageable debt, sustainable cash flow and strong liquidity.  True “blues” also are leaders in attractive market niches, and have strong market positions along with the ability to cope with competition and economic cycles.  So you could extrapolate that a light blue chip is a company in a strong financial position who is not yet a leader in a market niche, but has the potential to be one.

“Red chips” are companies whose main assets and operations are in China, particularly if those companies are listed in Hong Kong.

Red chips in blue-chip market positions (that is, market leaders) are called “purple chips.”  Combine red and blue and you get purple.

And “green chips” are companies that are eco-friendly; they offer investments in sustainability, alternative energy, clean energy, and the like.  A green chip company could have a blue chip market position as well.

A mutual fund is a vehicle wherein a group of investors pool their money to buy a “basket” of investments, thus offering more diversification together as a group than any might be able to have on their own.  A mutual fund can invest in stocks, bonds, real estate, commodities, natural resources, gold, other mutual funds, and more.  They are quite flexible.

Morningstar is a investment advisory rating service that rates mutual funds, exchange-traded funds, and stocks, among other investments.  

The term “Morningstar rating” generally refers to their 1- to 5-star rating system, with 5 stars being the best.  It’s important to note that, along with the star system, Morningstar also offers a risk rating (high/low/average) and a return rating (high/low/average).  

Some pundits suggest that, since a Morningstar 5-star rating is based on how well a mutual fund has done recently, buying a 5-star fund means you are, by definition, buying high….which often leads to selling low.  The basic rule for success in investing is “buy low, sell high”…unfortunately, most investors don’t!

Good luck.

Answer 2

Mutual fund is is simply a financial intermediary that allows a group of investors to pool their money together with a predetermined investment objective. The mutual fund will have a fund manager who is responsible for investing the pooled money into specific securities (usually stocks or bonds). When you invest in a mutual fund, you are buying shares (or portions) of the mutual fund and become a shareholder of the fund.

Morning star is a term used in technical analysis. Which can be found in the candle stick chart. When the closing price and opening price is about the same and the stock and price had move to certain high then that signal is called morning star.

Answer 3

I don't know of any other types of "chips" other than blue chips.  A mutual fund is an organization that pools money from many investors for the purpose of investing it.  Investors own their proportionate share of the assets.  Morningstar is an investment advisory service that, among other things, rates mutual funds.  They rate them on a scale of one star to five stars, five stars being the best.