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.

BREAKING DOWN '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.

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RELATED FAQS
  1. How long does it take an oil and gas producer to go from drilling to production?

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  3. What are risks associated with investing in the oil & gas drilling sector?

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  4. Why did the New York Stock Exchange report prices in fractions before it switched ...

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