Investing in blue chip stocks is the traditional way to invest. A blue chip stock is a stock of a large, financially solvent and well-established company possessing stable earnings and no extensive liabilities. Blue chip companies also possess large market capitalisations, an institutional economic status and generally sell recognisable high quality products and services. Blue chip companies are known to weather downturns and operate profitably in the face of adverse economic conditions, which helps to contribute to their long record of stable and reliable growth. They are ultimately less volatile than non-blue chip companies, maintain a solid record of stable earnings and /or dividend growth and a reputation for high quality management and/or products. Most blue chip companies pay regular dividends despite changing business conditions. Although share prices are typically high, blue chips attract investors seeking relative safety and stability, as they are perceived to offer reliable returns, low yield, and low risk. Many blue chips are components of popular indices, which they usually follow closely, such as the FTSE 100.