performance stock

Performance stock

High-growth stock in a company that retains earnings for further growth and therefore pays no dividends, but that an investor feels has significant future potential.

Performance Stock

A stock that is undergoing, or is likely to undergo, significant price appreciation. Performance stocks generally do not pay dividends because their companies reinvest all earnings toward further growth. Some investors seek out performance stocks because of the potential for high profit in a short period of time. They tend to have high price-earnings ratios. However, the term has a connotation referring to a stock that is fundamentally strong, as opposed to a hot stock, which does not have this connotation.

performance stock

A stock that investors believe has an excellent chance for significant price appreciation. Performance stock tends to be issued by growth-oriented firms that retain most or all income for reinvestment. The stock usually sells at above-average price-earnings ratios and experiences large price swings. Performance stock is judged more on the basis of fundamental analysis than are glamour stock and hot stock, which are more subject to investor psychology.
References in periodicals archive ?
The Annual General Meeting authorized the Board to decide on the purchase and transfer of own series A shares, in order to fulfill obligations related to the performance stock option plan for 2017, and to the part of the board fee that consists of synthetic shares.
These inducement awards will consist of stock options to purchase 250,000 shares of Silver Spring's common stock with an exercise price equal to the closing price of Silver Spring's common stock on the New York Stock Exchange on the date of grant and 125,000 restricted stock units, as well as 125,000 performance stock units.
Further, the Annual General Meeting re-elected Deloitte AB as the company's auditing company; approved the proposal of the board regarding guiding principles for remuneration to senior executives (CEO and other members of Group management) and a performance based personnel option plan for 2015; authorised the board to decide on the purchase and transfer of own series A shares, in order to fulfil obligations related to the performance stock option plan for 2015 and to the part of the board fee that consists of synthetic shares; Meeting resolved on an automatic redemption procedure in accordance with the board's proposal.
Moreover, 60 percent of Top 200 companies using performance-based grants like performance shares or performance stock units had weights of 50 percent or higher in their LTI mix.
This has been one of the most highlyanticipated sales since its cancellation in September as it provides a unique opportunity in terms of quality and performance stock for anyone interested in developing their own Texel flock, or starting a new flock," said Mr Oates's son Tom.
Performance Stock price performance Include market cap and explain Graph data--five FYs past plus business/industry cycles and current FY, usually a market situation; show dividend graph--showing company and market growth components.
Among them, 37% incorporate "design variations"--primarily performance stock options, restoration (reload) stock options, and premium and discount stock options.
In one case, investors track their performance stock by stock and are loss averse over individual stock fluctuations.
If the new method is chosen, compensation cost arising from both fixed and performance stock compensation plans should be measured at the fair value of the award on the grant date, with subsequent adjustments for actual experience for performance-related factors i"modified grant date" method).

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