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Story Stock

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Story Stock
A stock with a higher price than its earnings and other indicators would otherwise allow because of the expectation of future news or earnings. For example, during the dot-com bubble, many stocks were story stocks because investors expected good news in the future. As a result, many stocks traded at very high prices even before they had had any earnings. Story stocks may realize their expectations, though, in the case of the dot-com bubble, many did not.


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