Green Chip Stocks

Green chip stocks are shares of companies whose primary business is beneficial to the environment. Green chip stocks are likely to be concentrated in areas such as alternative energy, pollution control, carbon abatement and recycling. While the term is derived from “blue chip,” which refers to a stock that is an industry leader and consistently profitable, a typical green chip may have profitability challenges and a financial structure that is less stable than that of a blue chip. But despite these issues, green chip stocks may attract significant interest from investors who care about environmentally-friendly market leaders.