<PAGE>
PAGE 1
FINANCIAL PLANNING
IDS Stock Fund
1994 annual report
(prospectus enclosed)
(Icon of) building with columns
The goals of IDS Stock Fund, Inc. are current income and growth of
capital. The fund invests primarily in common stocks and
securities convertible into common stock.
(This annual report includes a prospectus that describes in detail
the fund's objective, investment policies, risks, sales charges,
fees and other matters of interest. Please read the prospectus
carefully before you invest or send money.)
IDS
An American Express company
AMERICAN
EXPRESS
Distributed by IDS Financial Services Inc.<PAGE>
PAGE 2
(Icon of) Building with columns
Big names, big business
These are the names you know. They are the movers and shakers of
today's business world. Whether representing established U.S.
firms or companies that have made their mark overseas, the
securities found in Stock Fund make up a veritable who's who in the
financial market. These stocks offer a dual benefit of ongoing
growth potential along with a steady stream of dividend income.
And as we move toward a more global economy, these blue chip,
multi-national companies are well-positioned to prosper in the 21st
century.<PAGE>
PAGE 3
Contents
(Icon of) One open book inside of another.
The purpose of this annual report is to tell investors how the fund
performed.
The prospectus, which is bound into the middle of this annual
report, describes the fund in detail.
1994 annual report
From the president 4
From the portfolio management team leader 4
Ten largest holdings 6
Making the most of your fund 7
Long-term performance 8
Independent auditors' report 9
Financial statements 10
Notes to financial statements 13
Investments in securities 19
IDS mutual funds 24
Federal income tax information 27
Table of contents
The fund in brief
Goal 3p
Types of fund investments 3p
Manager and distributor 3p
Portfolio manager 3p
Sales charge and fund expenses
Sales charge 4p
Operating expenses 4p
Performance
Financial highlights 5p
Total returns 6p
Key terms 7p
Investment policies and risks
Facts about investments and their risks 8p
Fund structure 12p
Valuing assets 12p
How to buy, exchange or sell shares
How to buy shares 13p
How to exchange shares 15p
How to sell shares 15p
Reductions of the sales charge 19p
Waivers of the sales charge 20p
Special shareholder services
Services 21p
Quick telephone reference 21p
<PAGE>
PAGE 4
Distributions and taxes
Dividend and capital gain distributions 22p
Reinvestments 23p
Taxes 24p
How the fund is organized
Shares 27p
Voting rights 27p
Shareholder meetings 27p
Directors and officers 27p
Investment manager and transfer agent 29p
Distributor 30p
About IDS
General information 31p<PAGE>
PAGE 5
To our shareholders
(Photo of) William R. Pearce, President of the fund
(Photo of) Joe Barsky, Portfolio management team leader
From the president
All of the funds in the IDS MUTUAL FUND GROUP held shareholder
meetings on Nov. 9, 1994. The meetings, which were well-attended,
approved all of the proposals advanced by management. Among the
proposals were:
o The election of directors and the selection of KPMG Peat
Marwick LLP as independent auditors for each of the funds in
the group.
o A new investment management agreement that will become
effective for each fund when it begins offering multiple
classes of shares, now planned to occur in early March, 1995.
o A change in investment policy that will permit the fund to
adopt a master/feeder structure if and when the board of each
fund determines that it is in the best interest of
shareholders.
o And, finally, a change in the rules with respect to the
number of "fundamental investment polices" that allows the
board to modify them should they deem appropriate.
No other business was presented at the meeting, which was concluded
by a report to shareholders from the IDS Investment Department.
Thanks to all of you for your effort in reviewing the proxy
material and voting your proxies.
William R. Pearce
From the portfolio management team leader
In an unsettled period for stocks, IDS Stock Fund provided a
positive total return for shareholders that essentially matched
that of the stock market as a whole (as measured by the Standard &
Poor's 500 Stock Index, an unmanaged group of widely held stocks
commonly used to gauge the market's performance). Although the
fund's net asset value declined for the fiscal year, that was more
than offset by dividend and capital gain distributions in December
1993.
The past 12 months largely came down to a tug of war between the
negative influence of rising interest rates and the positive forces
of low inflation and expanding corporate profits.
The period began on a positive note in November 1993, as stocks
mounted a rally that lasted well into January. The tenor of the
market changed, though, in early February 1994, when the Federal
Reserve began raising short-term interest rates to cool down the
economy and prevent the possibility of rapidly rising inflation.<PAGE>
PAGE 6
That Fed policy change marked the end of an extended trend of lower
interest rates that played a major role in propelling a stock
market advance that had gone virtually uninterrupted for more than
three years. The interest-rate rise, which continued almot
unabated through the rest of the fiscal year, took its biggest toll
on stocks early last spring.
Positive factors
The good news, however, was that inflation reports remained
encouraging and many corporations were enjoying solid if not
excellent profits. Periodically, these factors would buoy
investors' confidence and the market would spurt ahead. Late
summer and early fall was a particularly strong time, during which
the fund recouped essentially all of the losses incurred in the
spring.
As would be expected in a volatile investment environment, no
sector of the stock market provided consistently positive
performance. Early in the fiscal year, healthcare services and
aerospace stocks helped us the most, while during the final several
months certain telecommunications, technology, pharmaceutical,
metal and paper stocks provided the best gains. Because the market
was so selective, it was much more important to find the right
stocks than the right sectors.
Our foreign holdings fluctuated in value quite a bit, but gave us
good overall performance, with Mexico and South America leading the
way. We kept about 20% of the portfolio invested in foreign stocks
during the 12 months, a figure that we're likely to maintain in the
months ahead, given the generally positive outlook for foreign
investments.
Which way rates?
While we continue to look for a positive return from stocks in the
current fiscal year, we think the direction of interest rates will
keep the market off balance during the near term. As has been the
case for many months, effective stock selection again will be vital
to success in such an environment.
The main emphasis of the portfolio currently is on stocks of
capital goods providers, which includes the areas of technology,
construction equipment and productivity-enhancement. In most
cases, we're also focusing on companies that derive a substantial
portion of their business from foreign markets, especially
developing nations, where demand for U.S. goods is high.
Joe Barsky
<PAGE>
PAGE 7
12-month performance
(All figures per share)
Net asset value (NAV)
Oct. 31, 1994 $19.48
Oct. 31, 1993 21.24
Decrease $(1.76)
Distributions
Nov. 1, 1993-Oct. 31, 1994
From income $ 0.91
From capital gains $ 1.64
Total distributions $ 2.55
Total Return* +3.9%
*If you purchased shares in the fund during this period, your
return also would have been affected by the sales charge, as
described in the prospectus.<PAGE>
PAGE 8
<TABLE>
IDS Stock Fund, Inc.
Your fund's ten largest holdings
<CAPTION>
(Pie chart)
The ten holdings listed here make up 12.88% of the fund's net assets
_____________________________________________________________________________________________________________
Percent Value
(of fund's net assets)(as of Oct. 31, 1994)
____________________________________________________________________________________
<S> <C> <C>
Minnesota Mining & Manufacturing 1.46% $ 34,609,375
Minnesota Mining & Manufacturing (3M) is a
diversified Manufacturer of industrial, commercial
and consumer products, including tapes, adhesives,
coatings and sealants.
First Chicago 1.45 34,300,000
A bank holding company whose main business is
commercial banking, but with retail banking and
credit card operation as well.
Exxon 1.39 33,009,375
Exxon is a major factor in the world crude oil,
natural gas and chemical industry and also has
substantial coal and mineral holdings.
General Signal 1.29 30,600,000
A leading producer of capital goods for the process
control, electrical and telecommunications industry.
Sears, Roebuck & Co. 1.26 29,700,000
Sears, Roebuck & Co., through its Sears stores,
is the third largest retailer in the world.
Royal Dutch Petroleum 1.23 29,125,000
Royal Dutch Petroleum Co., which includes Royal
Dutch (the Dutch version) and Shell Transport (the
English version) is a major oil company.
CSX 1.22 29,000,000
A transportation company that generates most of its
income from coal and freight-hauling by rail.
Reader's Digest Association 1.21 28,518,750
Reader's Digest is a publisher and direct mail
marketer of magazines, books, recorded music and
and other products worldwide.
<PAGE>
PAGE 9
U S WEST 1.19 28,218,750
U S WEST provides telecommunications services to
more than 40% of the United States in 14 western
states.
Goodyear Tire & Rubber 1.18 28,000,000
One of the largest manufacturers of tires in the
world.
</TABLE>
Making the most of your fund
Average annual total return
(as of Oct. 31, 1994)
1 year 5 years 10 years
- -1.27% +10.39% +13.63%
Your investment and return values fluctuate so that your shares,
when redeemed, may be worth more or less than the original cost.
Figures reflect the deduction of the maximum 5% sales charge. This
was a period of widely fluctuating security prices. Past
performance is no guarantee of future results.
Build your assets systematically
To keep your assets growing steadily, one of the best ways to use
the fund is by dollar-cost averaging -- a time-tested strategy that
can make market fluctuations work for you. To dollar-cost average,
simply invest a fixed amount of money regularly. You'll
automatically buy more shares when the fund's share price is low,
fewer shares when it is high.
This does not ensure a profit or avoid a loss if the market
declines. But, if you can continue to invest regularly through
changing market conditions, it can be an effective way to
accumulate shares to meet your long-term goals.
How dollar-cost averaging works
Month Amount Per-share Number of shares purchased
invested market price
Jan $100 $20 5.00
Feb 100 18 5.56
Mar 100 17 5.88
Apr 100 15 6.67
May 100 16 6.25
June 100 18 5.56
July 100 17 5.88
Aug 100 19 5.26
Sept 100 21 4.76
Oct 100 20 5.00
(footnotes to table) By investing an equal number of dollars each
month...
(arrow in table pointing to April) you automatically buy more
shares when the per share market price is low<PAGE>
PAGE 10
(arrow in table pointing to September) and fewer shares when the
per share market price is high.
You have paid an average price of only $17.91 per share over the 10
months, while the average market price actually was $18.10.
Your fund's long-term performance
Three ways to benefit from a mutual fund:
o your shares increase in value when the fund's investments do
well
o you receive capital gains when the gains on investments sold
by the fund exceed losses
o you receive income when the fund's stock dividends, interest
and short-term gains exceed its expenses.
All three make up your total return. And you potentially can
increase your investment if, like most investors, you reinvest your
dividends and capital gain distributions to buy additional shares
of the fund or another fund.
How your $10,000 has grown in IDS Stock Fund
$35,886
S&P 500 Stock Fund
Stock Index
Lipper Growth &
Income Fund Index
$20,000
$9,500
'84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94
Assumes: Holding period from 10/31/84 to 10/31/94. Returns do not
reflect taxes payable on distributions. Also see "Performance" in
the fund's current prospectus. Reinvestment of all income and
capital gain distributions for the fund, with a value of $23,929.
The Standard & Poor's 500 Stock Index, an unmanaged list of larger
stocks is frequently used as a general measure of market
performance.
Lipper Growth and Income Fund Index, published by Lipper Analytical
Services, Inc., include 30 funds that are generally similar to the
fund, although some funds in the index may have somewhat different
investment policies or objectives.
On the chart above you can see how the fund's total return compared
to two widely cited performance indexes, the S&P 500 and the Lipper
Growth & Income Fund Index. In comparing Stock Fund to the two
indexes, you should take account of the fact that the fund's
performance reflects the maximum sales charge of 5%, while such<PAGE>
PAGE 11
charges are not reflected in the performance of the indexes. If
you were actually to buy either individual stocks or growth mutual
funds, any sales charges that you pay would reduce your total
return as well.
Your investment and return values fluctuate so that your shares,
when redeemed, may be worth more or less than the original cost.
Average annual total return figures reflect the deduction of the
maximum 5% sales charge. This was a period of widely fluctuating
security prices. Past performance is no guarantee of future
results.<PAGE>
PAGE 12
Independent auditors' report
___________________________________________________________________
The board of directors and shareholders
IDS Stock Fund, Inc.:
We have audited the accompanying statement of
assets and liabilities, including the schedule of
investments in securities, of IDS Stock Fund,
Inc. as of October 31, 1994, and the related
statement of operations for the year then ended
and the statements of changes in net assets for
each of the years in the two-year period ended
October 31, 1994, and the financial highlights
for each of the years in the ten-year period
ended October 31, 1994. These financial
statements and the financial highlights are the
responsibility of fund management. Our
responsibility is to express an opinion on these
financial statements and the financial highlights
based on our audits.
We conducted our audits in accordance with
generally accepted auditing standards. Those
standards require that we plan and perform the
audit to obtain reasonable assurance about
whether the financial statements and the
financial highlights are free of material
misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and
disclosures in the financial statements.
Investment securities held in custody are
confirmed to us by the custodian. As to
securities purchased and sold but not received or
delivered, and securities on loan, we request
confirmations from brokers, and where replies are
not received, we carry out other appropriate
auditing procedures. An audit also includes
assessing the accounting principles used and
significant estimates made by management, as well
as evaluating the overall financial statement
presentation. We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, the financial statements referred
to above present fairly, in all material
respects, the financial position of IDS Stock
Fund, Inc. at October 31, 1994, and the results
of its operations for the year then ended and the
changes in its net assets for each of the years
in the two-year period ended October 31, 1994,<PAGE>
PAGE 13
and the financial highlights for the periods
stated in the first paragraph above, in
conformity with generally accepted accounting
principles.
KPMG Peat Marwick LLP
Minneapolis, Minnesota
December 2, 1994
<PAGE>
PAGE 14
<TABLE>
Financial statements
Statement of assets and liabilities
IDS Stock Fund, Inc.
Oct. 31, 1994
<CAPTION>
_____________________________________________________________________________________________________________
Assets
_____________________________________________________________________________________________________________
<S> <C>
Investments in securities, at value (Note 1):
Investments in securities of unaffiliated issuers (identified cost $2,220,483,972) $2,367,076,894
Investments in securities of affiliated issuers (identified cost $44,803,480) 46,406,250
_____________________________________________________________________________________________________________
Total investments in securities (identified cost $2,265,287,452) 2,413,483,144
Dividends and accrued interest receivable 5,824,546
Receivable for investment securities sold 32,123,553
Receivable for foreign currency contracts held, at value (Notes 1 and 6) 1,386,397
U.S. government securities held as collateral (Note 4) 27,158,074
_____________________________________________________________________________________________________________
Total assets 2,479,975,714
_____________________________________________________________________________________________________________
Liabilities
_____________________________________________________________________________________________________________
Disbursements in excess of cash on demand deposit 7,651,080
Payable for investment securities purchased 62,233,320
Payable upon return of securities loaned (Note 4) 37,439,174
Payable for foreign currency contracts held, at value (Notes 1 and 6) 1,386,372
Accrued investment management and services fee 1,058,847
Accrued distribution fee 95,863
Accrued transfer agency fee 238,874
Other accrued expenses 350,273
Open option contracts written, at value (premium received $1,790,183)(Note 5) 1,771,518
_____________________________________________________________________________________________________________
Total liabilities 112,225,321
_____________________________________________________________________________________________________________
Net assets applicable to outstanding capital stock $2,367,750,393
_____________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________
Capital stock -- authorized 10,000,000,000 shares of $.01 par value;
outstanding 121,549,661 shares $ 1,215,497
Additional paid-in capital 2,029,565,703
Undistributed net investment income 4,526,952
Accumulated net realized gain (Note 1) 184,227,859
Unrealized appreciation (Note 6) 148,214,382
_____________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding capital stock $2,367,750,393
_____________________________________________________________________________________________________________
Net asset value per share of outstanding capital stock $ 19.48
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.<PAGE>
PAGE 15
</TABLE>
<TABLE>
Financial statements
Statement of operations
IDS Stock Fund, Inc.
Year ended Oct. 31, 1994
<CAPTION>
_____________________________________________________________________________________________________________
Investment income
_____________________________________________________________________________________________________________
<S> <C>
Income:
Dividends (net of foreign taxes withheld of $976,751) $ 60,051,411
Dividends earned on affiliate issuers 770,050
Interest 21,217,499
_____________________________________________________________________________________________________________
Total income 82,038,960
_____________________________________________________________________________________________________________
Expenses (Note 2):
Investment management and services fee 12,067,405
Distribution fee 999,043
Transfer agency fee 2,486,288
Compensation of directors 4,808
Compensation of officers 17,115
Custodian fees 408,300
Postage 236,691
Registration fees 215,202
Reports to shareholders 69,597
Audit fees 30,000
Administrative 26,809
Other 42,066
_____________________________________________________________________________________________________________
Total expenses 16,603,324
_____________________________________________________________________________________________________________
Investment income -- net 65,435,636
_____________________________________________________________________________________________________________
Realized and unrealized gain (loss) -- net
_____________________________________________________________________________________________________________
Net realized gain on security and foreign currency transactions
(including loss of $67,989 from foreign currency transactions) (Note 3) 182,359,148
Net realized gain on sale of affiliated security 525,300
Net realized gain on expired option contracts written (Note 5) 1,327,524
_____________________________________________________________________________________________________________
Net realized gain on investments and foreign currency 184,211,972
Net change in unrealized appreciation or depreciation (163,987,803)
_____________________________________________________________________________________________________________
Net gain on investments and foreign currency 20,224,169
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations $85,659,805
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.<PAGE>
PAGE 16
</TABLE>
<TABLE>
Financial statements
Statements of changes in net assets
IDS Stock Fund, Inc.
Year ended Oct. 31,
<CAPTION>
_____________________________________________________________________________________________________________
Operations and distributions 1994 1993
_____________________________________________________________________________________________________________
<S> <C> <C>
Investment income -- net $ 65,435,636 $ 50,064,349
Net realized gain on investments and foreign currency 184,211,972 189,191,483
Net change in unrealized appreciation or depreciation (163,987,803) 75,180,622
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations 85,659,805 314,436,454
_____________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income (66,287,242) (47,684,415)
Net realized gain (189,047,838) (145,269,306)
Excess distribution of realized gain (Note 1) -- (28,968)
_____________________________________________________________________________________________________________
Total distributions (255,335,080) (192,982,689)
_____________________________________________________________________________________________________________
Capital share transactions
_____________________________________________________________________________________________________________
Proceeds from sales of
26,559,784 and 13,265,220 shares (Note 2) 517,092,765 267,880,638
Net asset value of 11,576,290 and 9,177,264 shares
issued in reinvestment of distributions 226,574,033 176,369,824
Payments for redemptions of
13,522,239 and 8,219,963 shares (265,338,433) (165,004,017)
_____________________________________________________________________________________________________________
Increase in net assets from capital share transactions
representing net addition of
24,613,835 and 14,222,521 shares 478,328,365 279,246,445
_____________________________________________________________________________________________________________
Total increase in net assets 308,653,090 400,700,210
Net assets at beginning of year 2,059,097,303 1,658,397,093
_____________________________________________________________________________________________________________
Net assets at end of year
(including undistributed net investment income of
$4,526,952 and $5,437,453) $2,367,750,393 $2,059,097,303
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PAGE 17
Notes to financial statements
IDS Stock Fund, Inc.
__________________________________________________________________
1. Summary of significant accounting policies
The fund is registered under the Investment
Company Act of 1940 (as amended) as a
diversified, open-end management investment
company. Significant accounting policies followed
by the fund are summarized below:
Valuation of securities
All securities are valued at the close of each
business day. Securities traded on national
securities exchanges or included in national
market systems are valued at the last quoted
sales price; securities for which market
quotations are not readily available are valued
at fair value according to methods selected in
good faith by the board of directors.
Determination of fair value involves, among other
things, reference to market indexes, matrixes and
data from independent brokers. Short-term
securities maturing in more than 60 days from the
valuation date are valued at the market price or
approximate market value based on current
interest rates; those maturing in 60 days or less
are valued at amortized cost.
Options transactions
In order to produce incremental earnings, protect
gains, and facilitate buying and selling of
securities for investment purposes, the fund may
buy or write options traded on any U.S. or
foreign exchange or in the over-the-counter
market where the completion of the obligation is
dependent upon the credit standing of the other
party. The fund also may buy and sell put and
call options and write covered call options on
portfolio securities and may write cash-secured
put options. The risk in writing a call option is
that the fund gives up the opportunity of profit
if the market price of the security increases.
The risk in writing a put option is that the fund
may incur a loss if the market price of the
security decreases and the option is exercised.
The risk in buying an option is that the fund
pays a premium whether or not the option is
exercised. The fund also has the additional risk
of not being able to enter into a closing
transaction if a liquid secondary market does not
exist.
<PAGE>
PAGE 18
Option contracts are valued daily at the closing
prices on their primary exchanges and unrealized
appreciation or depreciation is recorded. The
fund will realize a gain or loss upon expiration
or closing of the option transaction. When an
option is exercised, the proceeds on sales for a
written call option, the purchase cost for a
written put option or the cost of a security for
a purchased put or call option is adjusted by the
amount of premium received or paid.
Futures transactions
In order to gain exposure to or protect itself
from changes in the market, the fund may buy and
sell stock index futures contracts traded on any
U.S. or foreign exchange. The fund also may buy
or write put and call options on these futures
contracts. Risks of entering into futures
contracts and related options include the
possibility that there may be an illiquid market
and that a change in the value of the contract or
option may not correlate with changes in the
value of the underlying securities.
Upon entering into a futures contract, the fund
is required to deposit either cash or securities
in an amount (initial margin) equal to a certain
percentage of the contract value. Subsequent
payments (variation margin) are made or received
by the fund each day. The variation margin
payments are equal to the daily changes in the
contract value and are recorded as unrealized
gains and losses. The fund recognizes a realized
gain or loss when the contract is closed or
expires.
Foreign currency translations and
foreign currency contracts
Securities and other assets and liabilities
denominated in foreign currencies are translated
daily into U.S. dollars at the closing rate of
exchange. Foreign currency amounts related to the
purchase or sale of securities and income and
expenses are translated at the exchange rate on
the transaction date. The effect of changes in
foreign exchange rates on realized and unrealized
security gains or losses is reflected as a
component of such gains or losses. In the
statement of operations, net realized gains or
losses from foreign currency transactions may
arise from sales of foreign currency, closed
forward contracts, exchange gains or losses
realized between the trade date and settlement
dates on securities transactions, and other
translation gains or losses on dividends,
interest income and foreign withholding taxes.<PAGE>
PAGE 19
The fund may enter into forward foreign currency
exchange contracts for operational purposes and
to protect against adverse exchange rate
fluctuation. The net U.S. dollar value of foreign
currency underlying all contractual commitments
held by the fund and the resulting unrealized
appreciation or depreciation are determined using
foreign currency exchange rates from an
independent pricing service. The fund is subject
to the credit risk that the other party will not
complete the obligations of the contract.
Federal taxes
Since the fund's policy is to comply with all
sections of the Internal Revenue Code applicable
to regulated investment companies and to
distribute all of its taxable income to
shareholders, no provision for income or excise
taxes is required.
Net investment income (loss) and net realized
gains (losses) may differ for financial statement
and tax purposes primarily because of the
deferral of losses on certain futures contracts,
the recognition of certain foreign currency gains
(losses) as ordinary income (loss) for tax
purposes, and losses deferred due to "wash sale"
transactions. The character of distributions made
during the year from net investment income or net
realized gains may differ from their ultimate
characterization for federal income tax purposes.
The effect on dividend distributions of certain
book-to-tax differences is presented as "excess
distributions" in the statement of changes in net
assets. Also, due to the timing of dividend
distributions, the fiscal year in which amounts
are distributed may differ from the year that the
income or realized gains (losses) were recorded
by the fund.
On the statement of assets and liabilities, as a
result of permanent book-to-tax differences,
undistributed net investment income has been
decreased by $58,895 and accumulated net realized
gain has been increased by $67,989 resulting in a
net reclassification adjustment to decrease paid-
in-capital by $9,094.
Dividends to shareholders
Dividends from net investment income, declared
and paid each calendar quarter, are reinvested in
additional shares of the fund at net asset value
or payable in cash. Capital gains, when
available, are distributed along with the last
income dividend of the calendar year.
<PAGE>
PAGE 20
Other
Security transactions are accounted for on the
date securities are purchased or sold. Dividend
income is recognized on the ex-dividend date and
interest income, including level-yield
amortization of premium and discount, is accrued
daily.
___________________________________________________________________
2. Expenses and sales charges
Under terms of an agreement dated Nov. 14, 1991,
the fund pays IDS Financial Corporation (IDS) a
fee for managing its investments, recordkeeping
and other specified services. The fee is a
percentage of the fund's average daily net assets
consisting of a group asset charge in reducing
percentages from 0.46% to 0.32% annually on the
combined net assets of all non-money market funds
in the IDS MUTUAL FUND GROUP and an individual
annual asset charge of 0.14% of average daily net
assets. The fee is adjusted upward or downward by
a performance incentive adjustment based on the
fund's average daily net assets over a rolling
12-month period as measured against the change in
the Lipper Growth and Income Fund Index. The
maximum adjustment is 0.08% of the fund's average
daily net assets after deducting 1% from the
performance difference. If the performance
difference is less than 1%, the adjustment will
be zero. The adjustment increased the fee by
$282,277 for the year ended Oct. 31, 1994.
The fund also pays IDS a distribution fee at an
annual rate of $6 per shareholder account and a
transfer agency fee at an annual rate of $15 per
shareholder account. The transfer agency fee is
reduced by earnings on monies pending shareholder
redemptions.
IDS will assume and pay any expenses (except
taxes and brokerage commissions) that exceed the
most restrictive applicable state expense
limitation.
Sales charges by IDS Financial Services Inc. for
distributing fund shares were $4,535,067 for the
year ended Oct. 31, 1994. The fund also pays
custodian fees to IDS Trust Company, an affiliate
of IDS.
The fund has a retirement plan for its
independent directors. Upon retirement, directors
receive monthly payments equal to one-half of the
retainer fee for as many months as they served as
directors up to 120 months. There are no death
benefits. The plan is not funded but the fund
recognizes the cost of payments during the time
the directors serve on the board. The retirement<PAGE>
PAGE 21 plan expense amounted to $17,249 for the year
ended Oct. 31, 1994.
___________________________________________________________________
3. Securities transactions
Cost of purchases and proceeds from sales of
securities (other than short-term obligations)
aggregated $1,533,397,787 and $1,471,959,617,
respectively, for the year ended Oct. 31, 1994.
Realized gains and losses are determined on an
identified cost basis.
Brokerage commissions paid to brokers affiliated
with IDS were $671,308 for the year ended Oct.
31, 1994.
___________________________________________________________________
4. Lending of portfolio securities
At Oct. 31, 1994, securities valued at
$37,217,750 were on loan to brokers. For
collateral, the fund received $10,281,100 in cash
and U.S. government securities valued at
$27,158,074. Income from securities lending
amounted to $380,271 for the year ended Oct. 31,
1994. The risks to the fund of securities lending
are that the borrower may not provide additional
collateral when required or return the securities
when due.
___________________________________________________________________
5. Option contracts written
The number of contracts and premium amounts
associated with options written is as follows:
Year ended Oct. 31, 1994
_________________________________________________
Puts Calls
Contracts Premium Contracts Premium
___________________________________________________________________
Balance Oct. 31, 1993 -- $ -- -- $ --
Open 18,218 1,120,929 38,885 2,975,557
Expired (2,143) (179,217) (17,835) (1,148,307)
Exercised -- -- (7,300) (978,779)
___________________________________________________________________
Balance Oct. 31, 199416,075 $ 941,712 13,750 $ 848,471
___________________________________________________________________
<PAGE>
PAGE 22
___________________________________________________________________
6. Foreign currency contracts
At Oct. 31, 1994, the fund had entered into a
foreign currency exchange contract that obligates
the fund to deliver currency at a specified
future date. The unrealized appreciation of $25
on this contract is included in the accompanying
financial statements. The terms of the open
contract is as follows:
<TABLE>
<CAPTION>
U.S. dollar value U.S. dollar value
Currency to be as of Currency to be as of
Exchange date delivered Oct. 31, 1994 received Oct. 31, 1994
_____________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Nov. 10, 1994 847,002 $1,386,372 1,386,397 $1,386,397
British Pound U.S. Dollar
______________________________________________________________________________
7. Financial highlights
"Financial highlights" showing per share data and
selected information is presented on page 5 of the
prospectus.
/TABLE
<PAGE>
PAGE 23
<TABLE>
Investments in securities
IDS Stock Fund, Inc. (Percentages represent value of
Oct. 31, 1994 investments compared to net assets)
<CAPTION>
Investments in securities of unaffiliated issuers
_____________________________________________________________________________________________________________________________
Common stocks (68.1%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Aerospace & defense (1.1%)
Northrop Grumman 31,900 $ 1,399,613
United Technologies 375,000 23,625,000
______________
Total 25,024,613
_____________________________________________________________________________________________________________________________
Automotive & related (3.1%)
Chrysler 400,000 19,500,000
Dana 1,000,000 25,625,000
Goodyear Tire & Rubber 800,000 28,000,000
______________
Total 73,125,000
_____________________________________________________________________________________________________________________________
Banks and savings & loans (3.6%)
BankAmerica 625,000 27,187,500
First Chicago 700,000 34,300,000
NationsBank 500,000 (j) 24,750,000
______________
Total 86,237,500
_____________________________________________________________________________________________________________________________
Beverages & tobacco (0.9%)
UST 800,000 21,200,000
_____________________________________________________________________________________________________________________________
Building materials (0.2%)
Tolmex 400,000 (b) 5,819,040
_____________________________________________________________________________________________________________________________
Chemicals (2.0%)
Dow Chemical 325,000 23,887,500
Nalco Chemical 325,000 10,481,250
Witco 450,000 12,600,000
______________
Total 46,968,750
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.<PAGE>
PAGE 24
Computers & office equipment (5.8%)
Amer Power Conversion 500,000 (c) 9,250,000
Banyan 600,000 (c) 10,350,000
Cisco Systems 400,000 12,050,000
COMPAQ Computer 225,000 9,028,125
Computer Assn Intl 225,000 11,165,625
Parametric Technology 200,000 (c,j) 7,200,000
Pitney Bowes 775,000 26,156,250
Solectron 325,000 (c) 9,059,375
Sterling Software 250,000 (c) 7,812,500
VMARK Software 40,000 (c) 650,000
Wall Data 275,000 (c,d) 9,968,750
Xerox 250,000 25,625,000
______________
Total 138,315,625
_____________________________________________________________________________________________________________________________
Electronics (0.9%)
Arrow Electronics 275,000 (c) 10,381,250
Intel 175,000 10,871,875
______________
Total 21,253,125
_____________________________________________________________________________________________________________________________
Energy (7.2%)
Amoco 425,000 26,934,375
Exxon 525,000 33,009,375
Repsol ADR 850,000 (b) 27,625,000
Royal Dutch Petroleum 250,000 (b) 29,125,000
Texaco 400,000 26,150,000
YPF Sociedad Anonima ADR 1,100,000 (b) 26,537,500
______________
Total 169,381,250
_____________________________________________________________________________________________________________________________
Energy equipment & services (1.1%)
Schlumberger 450,000 (b) 26,437,500
_____________________________________________________________________________________________________________________________
Financial services (3.2%)
Holly Residential Property 175,000 2,537,500
Kranzco Realty Trust 20,000 345,000
Mutual Risk Management 500,000 13,687,500
Paribas 300,000 (b) 19,966,800
Sizeler Property 143,700 1,580,700
State Street Boston 257,400 8,590,725
Travelers 800,000 27,800,000
______________
Total 74,508,225
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE 25
Health care (3.7%)
Cordis 300,000 (j) 17,287,500
Merck 600,000 (d) 21,450,000
Pfizer 325,000 24,090,625
Schering-Plough 350,000 24,937,500
______________
Total 87,765,625
_____________________________________________________________________________________________________________________________
Health care services (1.2%)
Columbia Healthcare 250,000 10,406,250
Physician Corp of Amer 500,000 (j) 12,062,500
Service Corp Intl 200,000 5,325,000
______________
Total 27,793,750
_____________________________________________________________________________________________________________________________
Industrial equipment & services (3.7%)
General Signal 850,000 (d) 30,600,000
Giddings & Lewis 1,500,000 23,250,000
Illinois Tool Works 550,000 24,681,250
Stewart & Stevenson 247,000 9,509,500
______________
Total 88,040,750
_____________________________________________________________________________________________________________________________
Industrial transportation (3.3%)
CSX 400,000 29,000,000
Norfolk Southern 425,000 26,775,000
Union Pacific 475,000 23,215,625
______________
Total 78,990,625
_____________________________________________________________________________________________________________________________
Insurance (1.1%)
CIGNA 375,000 24,703,125
_____________________________________________________________________________________________________________________________
Leisure time & entertainment (0.5%)
Hasbro 350,000 11,550,000
_____________________________________________________________________________________________________________________________
Media (3.4%)
McGraw-Hill 350,000 26,162,500
Reader's Digest Assn 650,000 28,518,750
Tele-Communications 200,000 (c) 4,525,000
Time Warner 400,000 14,200,000
Viacom Cl B 151,537 (c) 5,947,827
Viacom Cl A 20,000 (c) 802,500
______________
Total 80,156,577
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE 26
Metals (1.7%)
Cyprus Minerals 750,000 19,968,750
RTZ 1,500,000 (b) 21,090,000
______________
Total 41,058,750
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (4.9%)
General Electric 525,000 25,659,375
Grupo Carso ADR 275,000 (b,c) 6,050,000
Hanson ADR 1,250,000 (b) 23,281,250
Hutchison Whampoa 4,500,000 (b) 20,785,500
Madeco ADR 200,000 (b) 6,250,000
Minnesota Mining & Mfg 625,000 34,609,375
______________
Total 116,635,500
_____________________________________________________________________________________________________________________________
Paper & packaging (3.5%)
Crown Cork & Seal 323,100 (c) 12,560,512
Kimberly-Clark 500,000 25,750,000
Kimberly-Clark de Mexico 1,000,000 (b) 19,842,900
Union Camp 500,000 23,750,000
______________
Total 81,903,412
_____________________________________________________________________________________________________________________________
Retail (3.6%)
Gap 600,000 20,250,000
Home Depot 93,700 4,263,350
Penney (JC) 500,000 25,312,500
Pep Boys Manny Moe & Jack 187,500 6,703,125
Sears Roebuck 600,000 29,700,000
______________
Total 86,228,975
_____________________________________________________________________________________________________________________________
Utilities - electric (1.4%)
Central Puerto ADR 300,000 (b,d) 9,900,000
Veba 70,000 (b) 23,467,570
______________
Total 33,367,570
_____________________________________________________________________________________________________________________________
Utilities - natural gas (1.9%)
Enron 700,000 22,662,500
Tenneco 500,000 (j) 22,125,000
______________
Total 44,787,500
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE 27
Utilities - telephone (5.1%)
AirTouch Communications 925,000 (c) 27,634,375
BCE 675,000 (b) 23,625,000
LIN Broadcasting 50,000 (c) 6,900,000
MCI Communications 450,000 10,350,000
Pacific Telesis Group 750,000 23,718,750
U S WEST 750,000 28,218,750
______________
Total 120,446,875
_____________________________________________________________________________________________________________________________
Total common stocks of unaffiliated issuers
(Cost: $1,457,453,656) 46,010,837 $1,611,699,662
_____________________________________________________________________________________________________________________________
<CAPTION>
Preferred stocks & other (7.8%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Bethlehem Steel
$3.50 Cm Cv 350,000 (e) 18,812,500
Ceridan
$2.75 Cm Cv 275,000 17,221,875
COINTEL
5.04% Cv 275,000 (f) 17,118,750
Equitable
6% Cm Cv 375,000 (e) 17,625,000
First Chicago Nextell
5.50% Cm Cv 750,000 17,437,500
Ford Motor
4.20% Cm Cv 200,000 19,350,000
General Motors
3.25% Cm Cv 300,000 16,837,500
Kenetech
$1.67 Cm Cv 820,000 (f) 13,735,000
Parker & Parsley Capital
$3.125 Cm Cv 325,000 (e) 16,981,250
Sears Roebuck
3.75% Cm Cv 300,000 16,987,500
Tenneco
$2.80 Cm Cv 325,000 13,528,125
Viacom
Rights 250,000 328,125
_____________________________________________________________________________________________________________________________
Total preferred stocks & other
(Cost: $179,472,118) 4,545,000 $ 185,963,125
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE 28
_____________________________________________________________________________________________________________________________
<CAPTION>
Bonds (6.1%)
_____________________________________________________________________________________________________________________________
Principal
Issuer and coupon rate amount Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Banco Nacional de Mexico
7% Cv 1999 $15,000,000 (b,e) $ 16,650,000
Banco Nacional de Mexico Euro
7% Cv 1999 5,000,000 (b) 5,618,750
Cemex
4.25% Cv 1997 6,000,000 (e) 6,202,500
Conner Peripherals
6.75% Cv 2001 15,000,000 11,775,000
Henderson Land Group Euro
4% Cv 1996 15,000,000 (b,e) 14,700,000
Medical Care Intl
6.75% Cv 2006 20,000,000 18,000,000
NAC Re
5.25% Cv 2002 15,000,000 (e) 12,600,000
Rogers Communications
Zero Coupon
4.74% Cv 2013 50,000,000 (g) 17,500,000
Stone Container
6.75% Cv 2007 12,500,000 9,937,500
SynOptics Communications
5.25% 2003 25,000,000 (e) 18,125,000
Time Warner
Zero Coupon
6.59% Cv 2012 40,000,000 (g) 12,300,000
_____________________________________________________________________________________________________________________________
Total bonds
(Cost: $157,490,046) 218,500,000 $ 143,408,750
_____________________________________________________________________________________________________________________________
<CAPTION>
Short-term securities (18.0%)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable
date of at
purchase maturity
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
U.S. government agency (0.3%)
Federal Natl Mtge Assn Disc Note
11-22-94 4.79% $ 6,500,000 $ 6,481,914
_____________________________________________________________________________________________________________________________
Certificate of Deposit (0.2%)
Natl Bank Detroit
12-08-94 5.16 5,000,000 4,971,267
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE 29
Commercial paper (16.7%)
Ameritech
11-15-94 5.03 10,500,000 10,479,583
Amgen
12-02-94 4.86 4,100,000 4,081,050
Aon
11-07-94 5.02 3,200,000 3,197,333
11-29-94 4.90 3,000,000 2,988,637
AT&T
11-16-94 4.94 3,100,000 3,093,671
Avco Financial Services
11-23-94 4.88 16,900,000 16,849,807
BBV Finance (Delaware)
12-19-94 4.98 6,700,000 6,654,498
01-19-95 5.46 6,600,000 6,521,827
Becton Dickinson
11-29-94 4.94 3,300,000 3,287,372
Beneficial
11-17-94 5.13 6,500,000 6,485,267
11-22-94 4.87 5,700,000 5,683,874
Cafco
11-22-94 4.87 4,000,000 3,988,683
11-29-94 4.90 15,000,000 14,943,183
Chevron Oil Finance
12-01-94 4.93 3,200,000 3,186,907
Ciesco LP
11-02-94 4.67 6,000,000 5,999,178
11-07-94 4.94 4,000,000 3,996,720
11-10-94 4.84 4,900,000 4,894,120
Colgate Palmolive
11-08-94 5.07 4,800,000 (h) 4,795,287
Commercial Credit
11-09-94 4.84 9,200,000 9,189,711
Commerzbank U.S. Finance
12-19-94 5.07 4,500,000 4,469,439
Consolidated Natural Gas
11-14-94 4.98 2,700,000 2,695,174
CPC Intl
12-13-94 5.18 8,200,000 (h) 8,149,813
01-09-95 5.55 5,000,000 (h) 4,948,181
Eiger Capital
11-21-94 4.85 3,800,000 (h) 3,789,803
11-28-94 4.94 6,000,000 (h) 5,977,860
Fleet Funding
12-01-94 4.93 4,300,000 (h) 4,282,442
Ford Motor Credit
11-17-94 5.12 4,500,000 4,489,820
11-18-94 5.03 5,000,000 4,988,194
General Electric Capital
Services
11-18-94 4.90 6,300,000 6,285,482
Goldman Sachs Group
11-09-94 4.84 11,300,000 11,285,626
Kellogg
11-23-94 4.84 3,500,000 3,489,691
Merrill Lynch
11-28-94 5.03 6,100,000 6,077,125
<PAGE>
PAGE 30
Metlife Funding
11-03-94 4.68 8,700,000 8,697,127
11-14-94 4.84 6,300,000 6,287,691
Michigan Consolidated Gas
11-22-94 4.97 7,000,000 6,979,869
Mobile Australia Finance (Delaware)
11-22-94 4.85 2,900,000 (h) 2,891,829
12-01-94 4.92 4,100,000 (h) 4,083,258
Motorola
11-16-94 4.82 1,300,000 1,297,400
Natl Australia Funding (Delaware)
11-01-94 4.90 7,900,000 7,900,000
Natl Bank of Detroit
Canada
11-18-94 4.90 4,000,000 3,990,782
Nestle Capital
11-01-94 4.90 10,000,000 10,000,000
Norfolk Southern
11-14-94 5.08 3,700,000 (h) 3,693,253
12-05-94 4.90 6,200,000 (h) 6,167,939
Paccar Financial
12-21-94 5.12 5,700,000 5,657,714
Paribas Finance
11-23-94 4.85 7,000,000 6,979,338
Penney (JC) Funding
11-30-94 4.97 800,000 796,855
PepsiCo
11-10-94 5.05 7,100,000 7,091,089
Pioneer Hi-Bred Intl
12-05-94 4.95 6,100,000 6,071,598
Pitney Bowes Credit
11-08-94 4.83 3,600,000 3,596,226
12-05-94 5.09 1,600,000 1,591,895
01-11-95 5.43 5,000,000 4,946,700
Pittsburgh Natl Bank
01-06-95 5.50 10,000,000 10,000,149
St. Paul Companies
11-22-94 4.85 2,800,000 (h) 2,792,111
Sandoz
11-01-94 4.97 3,600,000 3,600,000
11-29-94 4.88 1,700,000 1,693,018
12-02-94 4.88 4,050,000 4,030,788
Sara Lee
12-16-94 5.18 4,000,000 3,973,067
SmithKline Beecham
11-30-94 4.90 7,000,000 6,972,482
Southern California Gas
11-02-94 4.85 5,200,000 5,199,304
11-10-94 5.03 11,000,000 10,986,250
12-05-94 4.91 4,569,000 (h) 4,545,855
12-06-94 4.91 7,000,000 (h) 6,963,094
<PAGE>
PAGE 31
Southwestern Bell Capital
11-15-94 5.03 8,000,000 (h) 7,984,444
12-01-94 4.88 2,000,000 (h) 1,991,917
12-02-94 5.21 7,400,000 (h) 7,367,056
Sysco
11-21-94 4.99 9,800,000 (h) 9,773,050
USAA Capital
12-05-94 5.10 7,800,000 7,760,489
U S WEST Communications
11-04-94 4.79 5,900,000 5,897,665
11-14-94 4.86 5,000,000 4,991,297
______________
Total 396,487,957
_____________________________________________________________________________________________________________________________
Letters of credit (0.8%)
Bank of Amer-
AES Barbers Point
12-07-94 5.20 8,000,000 7,956,302
Bank of Amer-
Hyundai Motor Finance
12-08-94 5.17 7,200,000 7,160,322
First Natl Bankof Chicago-
Commed Fuel
11-02-94 4.97 2,948,000 2,947,595
______________
Total 18,064,219
_____________________________________________________________________________________________________________________________
Total short-term securities
(Cost: $426,068,152) 427,367,000 $ 426,005,357
_____________________________________________________________________________________________________________________________
Total investments in securities of unaffiliated issuers
(Cost: $2,220,483,972) 696,422,837 $2,367,076,894
_____________________________________________________________________________________________________________________________
<CAPTION>
Investments in securities of affiliated issuers (i)
_____________________________________________________________________________________________________________________________
Common stocks (1.9%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Ericsson (LM) ADR 11,000,000 (b) $ 22,687,500
Lukens 750,000 23,718,750
_____________________________________________________________________________________________________________________________
Total investments in securities of affiliated issuers
(Cost: $44,803,480) 11,750,000 $ 46,406,250
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $2,265,287,452)(k) $2,413,483,144
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE 32
_____________________________________________________________________________________________________________________________
Notes to investments in securities
_____________________________________________________________________________________________________________________________
(a) Securities are valued by procedures described in Note 1 to the financial statements.
(b) Foreign security values and principal amounts are stated in U.S. dollars.
(c) Presently non-income producing.
(d) Security is partially or fully on loan. See Note 4 to the financial statements.
(e) Represents a security sold under Rule 144A, which is exempt from registration under the Securities Act of 1933, as
amended. This security has been determined to be liquid under guidelines established by the board of directors.
(f) PRIDES - Preferred Redeemed Increased Dividend Equity Securities are structured as convertible preferred securities
issued by a company. Investors receive an enhanced yield but based upon a specific formula, potential appreciation is
limited. PRIDES pay dividends, have voting rights, are noncallable for three years and upon maturity, convert into shares
of common stock.
(g) For zero coupon bonds, the interest rate disclosed represents the annualized effective yield on the date of acquisition.
(h) Commercial paper sold within terms of a private placement memorandum, exempt from registration under Section 4(2) of the
Securities Act of 1933, as amended, and may be sold only to dealers in that program or other "accredited investors."
This security has been determined to be liquid under the guidelines established by the board of directors.
(i) Investments representing 5% or more of the outstanding voting securities of the issuer.
(j) At Oct. 31, 1994, securities valued at $53,537,500 were held in escrow to cover open call options
written as follows:
<CAPTION>
Number Exercise Expiration
Issuer of contracts price date Value(a)
_______________________________________________________________________________________
<S> <C> <C> <C> <C>
Cordis 3,000 $65 Nov. 1994 $ 46,890
NationsBank 750 50 Nov. 1994 56,250
Parametric Technology 2,000 40 Dec. 1994 150,000
Physician Corp of Amer 5,000 25 Dec. 1994 218,500
Tenneco 3,000 45 Dec. 1994 393,750
_______________________________________________________________________________________
(k) At Oct. 31, 1994, the cost of securities for federal income tax purposes was $2,265,186,782
and the aggregate gross unrealized appreciation and depreciation based on that cost was:
<CAPTION>
<C> <C>
Unrealized appreciation $193,252,250
Unrealized depreciation (44,955,888)
___________________________________________________________________________________________
Net unrealized appreciation $148,296,362
___________________________________________________________________________________________
/TABLE
<PAGE>
PAGE 33
IDS mutual funds
Cash equivalent investments
These money market funds have three main goals: conservation of
capital, constant liquidity and the highest possible current income
consistent with these objectives. Very limited risk.
IDS Cash Management Fund
Invests in such money market securities as high quality commercial
paper, bankers' acceptances, certificates of deposits (CDs) and
other bank securities.
(icon of) piggy bank
IDS Tax-Free Money Fund
Invests primarily in short-term bonds and notes issued by state and
local governments to seek high current income exempt from federal
income taxes.
(icon of) shield with piggy bank enclosed
Income investments
The funds in this group invest their assets primarily in corporate
bonds or government securities to seek interest income. Secondary
objective is capital growth. Risk varies by bond quality.
IDS Global Bond Fund
Invests primarily in debt securities of U.S. and foreign issuers to
seek high total return through income and growth of capital.
(icon of) globe
IDS Extra Income Fund
Invests mainly in long-term, high-yielding corporate fixed-income
securities in the lower rated, higher risk bond categories to seek
high current income. Secondary objective is capital growth.
(icon of) cornucopia
IDS Bond Fund
Invests mainly in corporate bonds, at least 50% in the higher
rated, lower risk bond categories, or the equivalent, and in
government bonds.
(icon of) greek column
<PAGE>
PAGE 34
IDS Strategy, Income Fund
Invests primarily in corporate and government bonds to seek high
current income while conserving capital. Also may seek capital
appreciation when consistent with its primary goals.
(icon of) chess piece
IDS Selective Fund
Invests in high-quality corporate bonds and other highly rated debt
instruments including government securities and short-term
investments. Seeks current income and preservation of capital.
(icon of) skyline
IDS Federal Income Fund
Invests primarily in securities issued or guaranteed as to the
timely payment of principal and interest by the U.S. government,
its agencies and instrumentalities. Seeks a high level of current
income and safety of principal consistent with its type of
investments.
(icon of) federal building
IDS Strategy, Short-Term Income Fund
Invests primarily in short-term and intermediate-term bonds and
notes to seek a high level of current income.
(icon of) chess piece
Tax-exempt income investments
These funds provide tax-free income by investing in municipal
bonds. The income is generally free from federal income tax. Risk
varies by bond quality.
IDS High Yield Tax-Exempt Fund
Invests primarily in medium- and lower-quality municipal bonds and
notes. Lower-quality securities generally involve greater risk of
principal and income.
(icon of) shield with basket of apples enclosed
IDS State Tax-Exempt Funds
(CA, MA, MI, MN, NY, OH)
Invests primarily in high- and medium-grade municipal securities to
provide income to residents of each respective state that is exempt
from federal, state and local income taxes. (New York is the only
state that is exempt at the local level.)
(icon of) shield with U.S. enclosed
<PAGE>
PAGE 35
IDS Tax-Exempt Bond Fund
Invests mainly in bonds and notes of state or local government
units, with at least 75% in the four highest rated, lowest risk
bond categories.
(icon of) shield with Greek column
IDS Insured Tax-Exempt Fund
Invests primarily in municipal securities that are insured as to
the timely payment of principal and interest. The insurance
feature minimizes credit risk of the fund but does not guarantee
the market value of the fund's shares.
(icon of) shield with eagle head
Growth and income investments
These funds focus on securities of medium to large, well-
established companies that offer long-term growth of capital and
reasonable income from dividends and interest. Moderate risk.
IDS International Fund
Invests primarily in common stocks of foreign companies that offer
potential for superior growth. The fund may invest up to 20% of
its assets in the U.S. market.
(icon of) three flags
IDS Strategy, Worldwide Growth Fund
Invests primarily in common stocks of companies throughout the
world that offer potential for superior growth. Holdings may range
from small- to large-capitalization stocks, including those of
companies involved in areas of rapid economic growth.
(icon of) chess piece
IDS Managed Retirement Fund
Invests in a combination of common stocks, fixed-income investments
and money market securities to seek a maximum total return through
a combination of growth of capital and current income.
(icon of) bird in a nest
IDS Equity Plus Fund
Invests primarily in a combination of moderate growth stocks,
higher-yielding equities and bonds. Seeks growth of capital and
income.
(icon of) three apple trees
<PAGE>
PAGE 36
IDS Blue Chip Advantage Fund
Invests in selected stocks from a major market index. Securities
purchased are those recommended by IDS research analysts as the
best from each industry represented on the index. Offers potential
for long-term growth as well as dividend income.
(icon of) ribbon
IDS Stock Fund
Invests in common stock of companies representing many sectors of
the economy. Seeks current income and growth of capital.
(icon of) building with columns
IDS Strategy, Equity Fund
Invests primarily in undervalued common stocks that offer potential
for growth of capital and income.
(icon of) chess piece
IDS Utilities Income Fund
Invests primarily in the stocks of public utility companies to seek
high current income and growth of income and capital with reduced
volatility.
(icon of) electrical cord
IDS Diversified Equity Income Fund
Invests primarily in high-yielding common stocks to seek high
current income and, secondarily, to benefit from the growth
potential offered by stock investments.
(icon of) four puzzle pieces
IDS Mutual
Invests in a balance between common stocks and senior securities
(preferred stocks and bonds). Seeks a balance of growth of capital
and current income.
(icon of) scale of justice
Growth investments
Funds in this group seek capital growth, primarily from common
stocks. They are high risk mutual funds with a potential for high
reward.
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IDS Discovery Fund
Invests in small- and medium-size, growth-oriented companies
emphasizing technological innovation and productivity enhancement.
Buys and holds larger growth-oriented stocks.
(icon of) ship
IDS Strategy, Aggressive Equity Fund
Invests primarily in common stocks of companies that are selected
for their potential for above-average growth. Above-average means
that their growth potential is better, in the opinion of the
portfolio's investment manager, than the Standard & Poor's
Corporation (S&P) 500 Stock Index.
(icon of) chess piece
IDS Growth Fund
Invests primarily in companies that have above-average potential
for long-term growth as a result of new management, marketing
opportunities or technological superiority.
(icon of) flower
IDS Global Growth Fund
Invests in stocks of companies throughout the world that are
positioned to meet market needs in a changing world economy. These
companies offer above-average potential for long-term growth.
(icon of) world
IDS New Dimensions Fund
Invests primarily in companies with significant growth potential
due to superiority in technology, marketing or management. The
Fund frequently changes its industry mix.
(icon of) dimension
IDS Progressive Fund
Invests primarily in undervalued common stocks. The fund holds
stocks for the long term with the goal of capital growth.
(icon of) shooting star
Specialty growth investment
This fund aggressively seeks capital growth as a hedge against
inflation.
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IDS Precious Metals Fund
Invests primarily in the securities of foreign or domestic
companies that explore for, mine and process or distribute gold and
other precious metals. This is the most aggressive and most
speculative IDS mutual fund.
(icon of) cart of precious gems
For more complete information about any of these funds, including
charges and expenses, you can obtain a prospectus by contacting
your financial planner or writing to IDS Shareholder Service, P.O.
Box 534, Minneapolis, MN 55440-0534. Read it carefully before you
invest or send money.
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PAGE 39
Federal income tax information
IDS Stock Fund, Inc.
___________________________________________________________________
The fund is required by the Internal Revenue Code of
1986 to tell its shareholders about the tax treatment
of the dividends it pays during its fiscal year.
Some of the dividends listed below were reported to
you on a Form 1099-DIV, Dividends and Distributions,
last January. Dividends paid to you since the end of
last year will be reported to you on a tax statement
sent next January. Shareholders should consult a tax
adviser on how to report distributions for state and
local purposes.
IDS Stock Fund, Inc.
Fiscal year ended Oct. 31, 1994
Income distributions
taxable as dividend income, 50.76% qualifying for deduction by
corporations.
Payable date Per share
Dec. 29, 1993 $0.4432
March 30, 1994 0.1550
June 29, 1994 0.1600
Sept. 29, 1994 0.1525
Total $0.9107
Capital gain distribution
taxable as long-term capital gain.
Payable date Per share
Dec. 29, 1993 $1.6372
Total distributions $2.5479
The distribution of $2.0804 per share, payable
Dec. 29, 1993, consisted of $0.1325 derived from net
investment income, $0.3107 from net short-term capital
gains (a total of $0.4432 taxable as dividend income)
and $1.6372 from net long-term capital gains.
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PAGE 40
Quick telephone reference
IDS Telephone Transaction Service
Redemptions and exchanges, dividend payments or reinvestments and
automatic payment arrangements
National/Minnesota: 800-437-3133
Mpls./St. Paul area: 671-3800
IDS Shareholder Service
Fund performance, objectives and account inquiries
612-671-3733
TTY Service
For the hearing impaired
800-846-4852
IDS Infoline
Automated account information (TouchToneR phones only), including
current fund prices and performance, account values and recent
account transactions
National/Minnesota: 800-272-4445
Mpls./St. Paul area: 671-1630
Your IDS financial planner:
IDS STOCK FUND
IDS Tower 10
Minneapolis, MN 55440-0010<PAGE>
PAGE 41
STATEMENT OF DIFFERENCES
Difference Description
1) The layout is different 1) Some of the layout in the
throughout the annual report. annual report to
shareholders is in two
columns.
2) Headings. 2) The headings in the
annual report and
prospectus are placed
in blue strip at the top
of the page.
3) There are pictures, icons 3) Each picture, icon and
and graphs throughout the graph is described in
annual report and prospectus. parentheses.
4) Footnotes for charts and 4) The footnotes for each
graphs are described at chart or graph are typed
the left margin. below the description of
the chart or graph.
