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. Drop Lock

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

    A slang term referring to marketable securities that are highly ...
  3. Dumbbell

    A method of investing in bonds so that the majority of an investor's ...
  4. Stock

    A type of security that signifies ownership in a corporation ...
  5. Exchange

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

    A system where security prices are quoted using a decimal format ...
Related Articles
  1. Spot Hotshot Penny Stocks
    Investing

    Spot Hotshot Penny Stocks

  2. The Dirt On Delisted Stocks
    Investing Basics

    The Dirt On Delisted Stocks

  3. Catching A Lift On The Penny Express
    Active Trading

    Catching A Lift On The Penny Express

  4. The Lowdown On Penny Stocks
    Investing Basics

    The Lowdown On Penny Stocks

comments powered by Disqus
Hot Definitions
  1. 80-10-10 Mortgage

    A mortgage transaction in which a first and second mortgage are simultaneously originated. The first position lien has an ...
  2. Passive ETF

    One of two types of exchange-traded funds (ETFs) available for investors. Passive ETFs are index funds that track a specific ...
  3. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another ...
  4. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  5. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  6. Debit Spread

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