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Barometer Stock - A barometer stock is a bond or stock used to gauge the entire stock market's condition. This is also known as a bellwether and generally involves only one stock or bond that investors widely believe can be used as an accurate state of condition when it comes to the stock market, and how well it is doing. For example, everyone knows that the Fortune 500 companies are generally stable; therefore, sometimes investors base the stock market's condition on how well a specific and usually stable stock is doing. |
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