DEFINITION of 'Single-Digit Midget'

A stock with a price that is below $10 per share. Although there are many large companies that trade below $10 per share, "single-digit midget" is a buzz word usually used to describe stocks of companies which have seen a price drop from much higher levels. This term was widely used after many dot-coms' prices dropped severely in the early 21st century.

BREAKING DOWN 'Single-Digit Midget'

A recently designated single-digit midget could be considered more speculative due to the potentially large fluctuation in price levels. New stock issues that are single-digit midgets could also be considered more speculative because they are subject to limited listing requirements, along with fewer filing and regulatory standards, due to their smaller market capitalization.

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