Champagne Stock

AAA

DEFINITION of 'Champagne Stock'

A slang term used to describe a stock that has appreciated dramatically. A champagne stock is one that has made shareholders a great deal of money. Although champagne stocks can come from any industry and sector, bubble stocks have made and lost shareholders quite a bit of money before those bubbles burst.

INVESTOPEDIA EXPLAINS 'Champagne Stock'

A champagne stock is typically one that has at least doubled or tripled in value in a relatively short period, creating a huge profit for the company's shareholders. The term is used because individuals who hold such stocks will often order an expensive bottle of champagne to celebrate their good fortune.

RELATED TERMS
  1. Tenbagger

    An investment that appreciates to 10 times its initial purchase ...
  2. Common Stock Equivalent

    Securities such as stock options, warrants, preferred bonds, ...
  3. Bellwether Stock

    A stock that is believed to be a leading indicator of the direction ...
  4. Abnormal Return

    A term used to describe the returns generated by a given security ...
  5. Growth At A Reasonable Price - ...

    An equity investment strategy that seeks to combine tenets of ...
  6. Insider Trading

    The buying or selling of a security by someone who has access ...
Related Articles
  1. Spotting Sharks Among Penny Stocks
    Investing Basics

    Spotting Sharks Among Penny Stocks

  2. Spot Hotshot Penny Stocks
    Investing

    Spot Hotshot Penny Stocks

  3. The Alphabet Soup Of Stocks
    Investing Basics

    The Alphabet Soup Of Stocks

  4. The Lowdown On Penny Stocks
    Investing Basics

    The Lowdown On Penny Stocks

Hot Definitions
  1. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  4. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  5. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  6. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
Trading Center