What is the meaning of hot stock and cold stock in stock market?

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2026-08-08 06:55

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I have heard of the term hot stock. A hot stock is one that is in great demand due to the news of any of its great business deal or profit declaration etc. Everyone is swarming to buy that company's stock and its price is going up...

Example: Lets say GM has released a new car model and there is widespread news that this car model is a blockbuster hit and people are ordering in thousands. This may have a great positive effect on GM shares and people would start buying it. In this scenario GM is a hot stock.

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