Define: Story Stock

UK Accounting Glossary

Definition: Story Stock



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Full Definition of Story Stock


A story stock is one that trades primarily on expectations of future profits rather than on current conditions. The expectations of a story stock are often driven by technology; for example, a story stock may offer a promising new drug or communications device. A large well-known company can become a story stock if it makes a radical change to its strategy, often by buying a company in an unrelated business.

A story stock tends to draw a disproportionate amount of attention from the financial and general press. Capturing the imagination of the trading public, a story stock will tend to trade with high levels of volatility as speculators rush in and out. The frenzy surrounding a story stock can last for months, or even years, and the price of a story stock can run to very high levels. Contrarian strategies based on fundamentals have great difficulty trading a story stock as valuations become secondary to momentum.


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Story Stock. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/story-stock/ (accessed: March 28, 2020).
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Story Stock. PayrollHeaven.com. Retrieved March 28, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/story-stock/

Definition Sources


Definitions for Story Stock are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 6th February 2020.