A
stock with a share price of less than one dollar. The imagery of a drill-bit comes from the days before
decimalization, when stocks were
quoted in fractions of a dollar; likewise, drill-bits are sized in fractions of an inch. In the present day, a drill-bit stock may be a new company or it may be an old company. A drill-bit stock may be in danger of
delisting, depending on the rules of the
exchange on which it
trades.