Gilt-Edged Security

Stock or bond of a company that has demonstrated over a number of years that it is capable of earning sufficient profits to cover dividends on stocks and interest on bonds with great dependability. The term is used with corporate bonds more often than with stocks, where the term Blue Chip is more common.

Stock or bond of a company that has demonstrated over a number of years that it is capable of earning sufficient profits to cover dividends on stocks and interest on bonds with great dependability. The term is used with corporate bonds more often than with stocks, where the term blue chip is more common.