A stock in a company whose predominant business is the production or sale of energy. Energy stock may include shares in both upstream companies, such as oil exploration firms, and downstream companies, such as oil refineries. Energy stocks have historically been dominated by oil and natural gas, but alternative energy companies are sometimes publicly-traded as well. Energy stock prices are largely determined by the supply and demand for energy and as such tend to be seasonal; they are also quite sensitive to political events. See also: Political risk.
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The stock of a company engaged in an energy-related business such as coal mining, oil refining, or electric power generation. Because of the diverse nature of this industry, the stocks do not always move together.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.