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.


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Cached on February 8, 2012, 1:36 pm