Drill-Bit Stock

AAA

DEFINITION of 'Drill-Bit Stock'

A term used to describe shares that trade for prices less than one dollar. The fractional prices are comparable to the diameter measures of drill-bits found in a hardware store.

INVESTOPEDIA EXPLAINS 'Drill-Bit Stock'

Drill bit sizes are described by fractions of an inch whereas drill bit stocks would be reported as fractions of a dollar. Due to the decimalization of stock prices by major stock exchanges, drill-bit stock prices are no longer seen.

RELATED TERMS
  1. Penny Stock

    A stock that trades at a relatively low price and market capitalization, ...
  2. Exchange

    A marketplace in which securities, commodities, derivatives and ...
  3. Decimalization

    A system where security prices are quoted using a decimal format ...
  4. Dumbbell

    A method of investing in bonds so that the majority of an investor's ...
  5. Drop Lock

    An arrangement whereby the interest rate on a floating rate note ...
  6. Dry Powder

    A slang term referring to marketable securities that are highly ...
Related Articles
  1. Investing

    Spot Hotshot Penny Stocks

    Don't flip a coin to find your next investment.
  2. Investing Basics

    The Dirt On Delisted Stocks

    Listed securities are "the cream of the crop". Find out how a firm can lose that status and why you should be wary.
  3. Active Trading

    Catching A Lift On The Penny Express

    The popularity of the penny stock market has grown, but are these stocks a safe bet?
  4. Investing Basics

    The Lowdown On Penny Stocks

    Think penny stocks will make you rich? If you don't understand the risks, you could end up penniless.
  5. Investing

    What is a penny stock?

    The term penny stock has evolved with the market. In the past, penny stocks were stocks that traded for less than a dollar per share. The SEC, however, modified the definition to include all ...
  6. Options & Futures

    What other sectors are most similar to oil & gas drilling?

    Learn about sectors with companies that face similar challenges and rewards as the oil and gas drilling sectors. One example is gold exploration companies.
  7. Options & Futures

    Options -- Accessing Stakes In Apple At Less Cost

    Finding Apple stock costly to trade? Here are multiple ways to trade it through low-cost Apple options.
  8. Investing Basics

    Should You Buy US Penny Stocks Or Emerging Market Stocks?

    While in the same asset class, emerging market stocks and US penny stocks have significant differences that can impact your portfolio.
  9. Investing Basics

    Why Do Penny Stocks Fail?

    Penny stocks are speculative and highly risky investments. Lack of government and stock exchange oversight and general information leaves penny stock investors open to sudden losses.
  10. Chart Advisor

    Time To Rebalance? These ETFs Say So

    Caution ahead: 2014 has been very good to U.S. large-cap indexes, but lagging commodities and funds holding mid- to small-caps point to a slowdown.

You May Also Like

Hot Definitions
  1. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  2. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  3. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  4. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  5. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  6. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
Trading Center