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.

BREAKING DOWN '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.

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