Meaning of cult stock | Babel Free

Definitions

A stock in a failing company whose price per share is inappropriately high because the company used to be a market leader or previously had a well-known popular product.

Examples

“With the demise of the dot-coms, you can make a strong case that a chain of doughnut shops has become America's favorite cult stock.”

“With a loyal core investor following, cult stocks inherently trade at a premium.”

“Cult stocks like Palm and Sun Microsystems can exist on air for years because they have cash and a history even if their market share shrinks and their prospects dim.”

CEFR level