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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.