Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

10-Bagger

What it is:

A 10-bagger is a stock thats value increases to 10 times its purchase price, or by 900%. 

How it works (Example):

If a company's stock is priced at $20 per share at the point of its IPO and increases in value to $200 after a year, it is a 10-bagger

Why it Matters:

It is rare for a company's share price to increase so drastically. Notable examples of stocks that have experienced such success in the past include Wal-Mart, Hewlett-Packard and General Electric.