Turnaround stock

Okay kiddo, have you ever heard of a store that wasn't doing very well and was about to close, but then suddenly got a lot better? We call that a "turnaround" - kind of like turning a ship around in the water.

Turnaround stocks are like those stores. They're companies that were struggling for a while, but have made some changes to start doing better. These changes could be things like new leadership, cutting costs, or making better products.

When a company starts doing better, more people want to buy their stock because they think it will keep going up. This can make the stock price rise a lot, sometimes even doubling or tripling!

But just like that store that turned things around, it's not a guarantee that the company will keep doing well forever. They could still go back to struggling if they don't keep making good choices. That's why it's important to be careful and not just buy a turnaround stock without doing your research.