According to the United States Olympic Committee: "The five colors of the rings blue, black and red (top) and yellow and green (bottom) were chosen since one of these colors can be found in the flag of each competing nation
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The five rings symbolise the five parts of the World (Continents) and the colours represent the colours of the national flags of the time.
The Ring of the Olympic Logo signifies the 5 Continents.
The bundle of the 5 rings represents unity.