stub stock
Definition
Shares selling at drastically reduced market price because either (1) their issuing firm has negative net worth after taking on a huge debt (due to a leveraged buyout or recapitalization), or (2) has paid an unusually large dividend. Stub stock is highly speculative, but also has extraordinary potential for gain if the issuer prospers.
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stub stock is in the Banking, Commerce & Finance, Investing and Securities & Futures Trading subjects.
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