Legal Definitions - glamour stock

Definition: A type of stock that attracts a lot of public interest because of its potential for fast growth or high earnings.

Examples: A company that is developing a new technology or product that is expected to be very popular might be considered a glamour stock. Another example could be a company that has recently gone public and is experiencing a lot of hype and excitement in the media.

Explanation: Glamour stocks are often associated with companies that are expected to have high growth potential, which can make them attractive to investors who are looking for big returns. However, these stocks can also be risky because they are often priced higher than their actual value, which means that they may be more likely to experience a sharp decline in value if the company does not meet expectations.