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IDS Stock Fund
1995 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.)
Distributed by American Express Financial Advisors Inc.
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(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 over-seas, 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.
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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.
1995 annual report
From the president 4
From the portfolio manager 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 23
IDS mutual funds 28
Federal income tax information 31
1995 prospectus
The Fund in brief
Goals 3p
Types of Fund investments and their risks 3p
Proposed conversion to master/feeder structure 3p
Manager and distributor 3p
Portfolio manager 3p
Alternative purchase arrangements 3p
Sales charge and Fund expenses 4p
Performance
Financial highlights 6p
Total returns 8p
Investment policies and risks
Facts about investments and their risks 10p
Valuing Fund shares 14p
How to purchase, exchange or redeem shares
Alternative purchase arrangements 15p
How to purchase shares 18p
How to exchange shares 20p
How to redeem shares 20p
Reductions and waivers of the sales charge 25p
Special shareholder services
Services 29p
Quick telephone reference 29p
Distributions and taxes
Dividend and capital gain distributions 30p
Reinvestments 30p
Taxes 31p
How to determine the correct TIN 33p
How the Fund is organized
Shares 34p
Voting rights 34p
Shareholder meetings 34p
Special considerations regarding
master/feeder structure 35p
Directors and officers 38p
Investment manager and transfer agent 40p
Distributor 42p
About American Express Financial Corporation
General information 45p
Appendix
Descriptions of derivative instruments 46p
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PAGE 4
To our shareholders
(Photo of) William R. Pearce, President of the Fund
(Photo of) Richard H. Warden, Portfolio manager
From the president
If you're an experienced investor, you know that 1995 was an
unusually strong year for the U.S. and some foreign financial
markets. Perhaps just as important, you also know that history
shows that bull markets don't last forever. Though they're often
unpredictable, declines - whether they're brief or long-lasting,
moderate or substantial - are always a possibility.
That fact reinforces the need for investors to review periodically
their long-term goals and assess whether their investment program
remains on track to achieving them. Your quarterly investment
statements are one part of that monitoring process. The other is a
meeting with your American Express financial advisor. That becomes
even more important if there's a major change in your financial
situation or in the financial markets.
William R. Pearce
From the portfolio manager
Supported by the stock market's strongest sustained advance in
recent years, IDS Stock Fund generated a double-digit total return
for shareholders during the past 12-month period - November 1994
through October 1995. (Please note that the change in net asset
value was affected by a substantial capital gain paid to
shareholders in December 1994. That distribution reduced the
Fund's net asset value by the same amount at that time.)
The rising-interest-rate trend that had kept the stock market off
balance almost all of 1994 was still in force when the period began
last November.
Although long-term rates had actually begun to level off by then,
concern about a potential run-up spawned a round of stock-selling
that pushed the market down sharply for the month. The Fund's
performance was similarly affected.
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PAGE 5
Rally begins
By mid-December, however, concern about higher interest rates began
to dissipate as the focus shifted more toward the generally strong
profits companies were reporting. Investors reacted positively to
the profit trend, which, when subsequently combined with declining
long-term interest rates, lent some much-awaited support to stocks.
From that point, it didn't take long for the stock market to turn a
moderate upturn into a robust rally that continued with only minor
interruptions through the end of the fiscal year. Most of the
time, growth stocks, especially those of high-technology companies,
led the advance.
While this Fund participated in the rally, its performance was
muted by three factors: a relatively small amount of technology
stocks in the portfolio, poor performance by our foreign holdings
early in the fiscal year, and a somewhat conservative portfolio
structure designed to protect the Fund in the event of a stock-
market downturn. The latter strategy worked to our disadvantage
during the summer and fall as the market continued to gain ground.
Financial services strong
Outside of our technology holdings, the portfolio received its
biggest boost from stocks in the financial services sector,
including banks and insurance companies. The bank stocks, in
particular, were helped by falling long-term interest rates. To
the Fund's benefit, financial services constituted the portfolio's
largest stock exposure throughout most of the fiscal year.
Looking to the current fiscal year, as of mid-November the
investment environment, although still largely positive, appears
somewhat less encouraging than it was early in 1995. While the
economy appears to still be moving forward and inflation remains
subdued, the third stock-market propellant, corporate profits, are
showing signs of slackening. Given that, we believe it's prudent
to stick with our relatively conservative strategy, which should
allow the Fund to take part in potential market upturns while
providing something of a cushion should stocks retreat.
Richard H. Warden
Class A
12-month performance
(All figures per share)
Net assest value (NAV)
Oct. 31, 1995 $19.96
Oct. 31, 1994 $19.48
Increase $ 0.48
Distributions
Nov. 1, 1994-Oct. 31, 1995
From income $ 0.71
From capital gains $ 1.29
Total distributions $ 2.00
Total return** +14.4%***
Class B
March 20, 1995-Oct. 31, 1995
(All figures per share)
Net asset value (NAV)
Oct. 31, 1995 $19.91
March 20, 1995* $18.03
Increase $ 1.88
Distributions
March 20, 1995*-Oct. 31, 1995
From income $ 0.31
From capital gains $ --
Total distributions $ 0.31
Total return** +12.1%***
Class Y
March 20, 1995-Oct. 31, 1995
(All figures per share)
Net asset value (NAV)
Oct. 31, 1995 $19.96
March 20, 1995* $18.03
Increase $ 1.93
Distributions
March 20, 1995*-Oct. 31, 1995
From income $ 0.37
From capital gains $ --
Total distributions $ 0.37
Total return** +12.8%***
*Inception date.
**The prospectus discusses the effects of sales charges, if any,
on the various classes.
***The total return is a hypothetical investment in the Fund with
all distributions reinvested.
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<TABLE>
<CAPTION>
IDS Stock Fund, Inc.
Your Fund's ten largest holdings
(Pie chart)
The ten holdings listed here make up 12.69% of the Funds
net assets
_____________________________________________________________________________________
Percent Value
Fund's net assets)(as of Oct. 31, 1995)
_____________________________________________________________________________________
<S> <C> <C>
Royal Dutch Petroleum 1.56% $43,006,250
A major oil company that includes Royal Dutch (the Dutch
version) and Shell Transport (the English version).
Kimberly-Clark 1.32 36,312,500
World's largest manufacturer of tissue products and other
household, personal care and industrial paper products.
Schering-Plough 1.27 34,856,250
A diversified company with products in both the ethical
and over-the-counter markets.
Merck 1.25 34,500,000
One of the world's largest drug manufacturers.
Pfizer 1.25 34,425,000
The leading producer of pharmaceuticals, hospital products,
animal health items, non-prescription medications and
specialty chemicals.
First Chicago 1.23 33,937,500
A bank holding company whose main business is
commercial banking, but with retail banking and credit
card operation as well.
Philip Morris 1.23 33,800,000
The largest cigarette company in the world and a fast
growing packaged-food company, as a result of the Kraft
acquisition.
General Electric 1.21 33,206,250
A diversified company with interest in manufacturing,
broadcasting (NBC), financial services and technology.
Johnson & Johnson 1.18 32,600,000
A major producer of health-care products, including
consumer products, medical and dental devices and products
and a wide variety of ethical and over-the-counter drugs.
General Re 1.18 32,596,875
A reinsurance holding company that operates in three
principal businesses: domestic property/casualty and life
reinsurance, international property/casualty and life
reinsurance and financial services.
</TABLE>
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Making the most of your Fund
Average annual total return
(as of Oct. 31, 1995)
Class A
1 year 5 years 10 years
+8.72% +13.62% +13.87%
Total returns for Class A, Class B and Class Y for the period from
March 20, 1995 to Oct. 31, 1995 were +6.99%, +7.14% and +12.77%,
respectively. March 20, 1995 was the inception date for Class B
and Class Y. Total return for Class A is shown for comparative
purposes. The performance of Class B and Class Y will vary from
the performance of Class A based on differences in sales charges
and fees.
Your investment and return values fluctuate so that your shares,
when redeemed, may be worth more or less than the original cost.
Figures for Class A and Class B reflect the effect 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
One of the best ways to invest in 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.
(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.
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PAGE 8
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.
Class A*
How your $10,000 has grown in IDS Stock Fund
Average annual total return
(as of Oct. 31, 1995)
1 year 5 years 10 years
+8.72% +13.62% +13.87%
$36,669
Stock
Fund
S&P 500
Stock Index
$30,000
Lipper Growth &
Income Fund Index
$20,000
$9,500
'85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95
* The graph above is for Class A only. Class B and Class Y are not
shown. Total returns for class A, Class B and Class Y for the
period from March 20, 1995 to Oct. 31, 1995 were +6.99%, +7.14% and
+12.77%, respectively. March 20, 1995 was the inception date for
Class B and Class Y. Total return for Class A is shown for
comparative purposes. The performance of Class B and Class Y will
vary from the performance of Class A based on differences in sales
charges and fees.
Assumes: Holding period from 10/31/85 to 10/31/95. Returns do not
reflect taxes payable on distributions. Reinvestment of all income
and capital gain distributions for the Fund, with a value of
$25,357. Also see "Performance" in the Fund's current prospectus.
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., includes 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 graph 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 into account of the fact that the Fund's
performance reflects the maximum sales charge of 5%, while such
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.
This was a period of widely fluctuating security prices. Past
performance is no guarantee of future results.
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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, 1995, 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, 1995, and the financial highlights for
each of the years in the ten-year period ended October 31, 1995.
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, 1995, 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, 1995, 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 1, 1995
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PAGE 10
<TABLE>
<CAPTION>
Financial statements
Statement of assets and liabilities
IDS Stock Fund, Inc.
Oct. 31, 1995
_____________________________________________________________________________________________________________
Assets
_____________________________________________________________________________________________________________
<S> <C>
Investments in securities, at value (Note 1):
Investments in securities of unaffiliated issuers (identified cost $2,430,378,566) $2,772,802,826
Investments in securities of affiliated issuers (identified cost $27,342,800) 24,600,000
Dividends and accrued interest receivable 6,035,874
Receivable for investment securities sold 5,422,474
_____________________________________________________________________________________________________________
Total assets 2,808,861,174
_____________________________________________________________________________________________________________
Liabilities
_____________________________________________________________________________________________________________
Disbursements in excess of cash on demand deposit 7,171,281
Payable for investment securities purchased 162,653
Payable upon return of securities loaned (Note 5) 49,285,600
Accrued investment management services fee 47,059
Accrued distribution fee 2,360
Accrued service fee 38,423
Accrued transfer agency fee 34,110
Accrued administrative services fee 9,439
Other accrued expenses 272,948
_____________________________________________________________________________________________________________
Total liabilities 57,023,873
_____________________________________________________________________________________________________________
Net assets applicable to outstanding capital stock $2,751,837,301
_____________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________
Capital stock -- authorized 10,000,000,000 shares of $.01 par value; $ 1,378,824
Additional paid-in capital 2,318,131,202
Undistributed net investment income 3,258,540
Accumulated net realized gain (Note 1) 89,387,275
Unrealized appreciation of investments and on translation
of assets and liabilities in foreign currencies (Note 7) 339,681,460
_____________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding capital stock $2,751,837,301
_____________________________________________________________________________________________________________
Net assets applicable to outstanding shares: Class A $1,984,334,434
Class B $ 29,432,290
Class Y $ 738,070,577
Net asset value per share of outstanding capital stock: Class A shares 99,428,489 $ 19.96
Class B shares 1,478,348 $ 19.91
Class Y shares 36,975,566 $ 19.96
See accompanying notes to financial statements.
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PAGE 11
Financial statements
Statement of operations
IDS Stock Fund, Inc.
Year ended Oct. 31, 1995
_____________________________________________________________________________________________________________
Investment income
_____________________________________________________________________________________________________________
Income:
Dividends (net of foreign taxes withheld of $567,634) $ 62,719,795
Dividends earned on affiliated issuers 787,500
Interest 20,047,378
_____________________________________________________________________________________________________________
Total income 83,554,673
_____________________________________________________________________________________________________________
Expenses (Note 2):
Investment management services fee 11,924,057
Distribution fee
Class A 440,563
Class B 61,182
Transfer agency fee 3,006,638
Incremental transfer agency fee - Class B 1,635
Service fee
Class A 2,083,463
Class B 14,268
Administrative services fee 516,430
Compensation of directors 39,823
Compensation of officers 16,890
Custodian fees 510,115
Postage 130,715
Registration fees 275,480
Reports to shareholders 125,896
Audit fees 33,000
Administrative 23,975
Other 38,497
_____________________________________________________________________________________________________________
Total expenses 19,242,627
Earnings credits on cash balances (Note 2) (13,795)
_____________________________________________________________________________________________________________
Total net expenses 19,228,832
_____________________________________________________________________________________________________________
Investment income -- net 64,325,841
_____________________________________________________________________________________________________________
Realized and unrealized gain (loss) -- net
_____________________________________________________________________________________________________________
Net realized gain on security and foreign currency transactions
(including loss of $3,798 from foreign currency transactions) (Note 3) 89,316,951
Net realized gain on sale of affiliated security 987,571
Net realized gain on foreign index futures 87,131
Net realized loss on closed or expired option contracts written (Note 6) (1,203,021)
_____________________________________________________________________________________________________________
Net realized gain on investments and foreign currency 89,188,632
Net change in unrealized appreciation or depreciation of investments and
on translation of assets and liabilities in foreign currencies 191,467,078
_____________________________________________________________________________________________________________
Net gain on investments and foreign currency 280,655,710
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations $ 344,981,551
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
</TABLE>
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<TABLE>
<CAPTION>
Financial statements
Statements of changes in net assets
IDS Stock Fund, Inc.
Year ended Oct. 31,
_____________________________________________________________________________________________________________
Operations and distributions 1995 1994
_____________________________________________________________________________________________________________
<S> <C> <C>
Investment income -- net $ 64,325,841 $ 65,435,636
Net realized gain on investments and foreign currency 89,188,632 184,211,972
Net change in unrealized appreciation or depreciation of investments
and on translation of assets and liabilities in foreign currencies 191,467,078 (163,987,803)
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations 344,981,551 85,659,805
_____________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income
Class A (51,850,665) (66,287,242)
Class B (173,178) --
Class Y (13,057,749) --
Net realized gain
Class A (184,130,267) (189,047,838)
_____________________________________________________________________________________________________________
Total distributions (249,211,859) (255,335,080)
_____________________________________________________________________________________________________________
Capital share transactions (Note 4)
_____________________________________________________________________________________________________________
Proceeds from sales
Class A shares (Note 2) 401,647,287 517,092,765
Class B shares 29,160,960 --
Class Y shares 743,895,793 --
Reinvestment of distributions at net asset value
Class A shares 214,124,802 226,574,033
Class B shares 170,388 --
Class Y shares 11,651,129 --
Payments for redemptions
Class A shares (1,025,683,435) (265,338,433)
Class B shares (Note 2) (592,525) --
Class Y shares (86,057,183) --
_____________________________________________________________________________________________________________
Increase in net assets from capital share transactions 288,317,216 478,328,365
_____________________________________________________________________________________________________________
Total increase in net assets 384,086,908 308,653,090
Net assets at beginning of year 2,367,750,393 2,059,097,303
_____________________________________________________________________________________________________________
Net assets at end of year
(including undistributed net investment income of
$3,258,540 and $4,526,952) $2,751,837,301 $2,367,750,393
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
</TABLE>
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PAGE 13
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.
The Fund offers Class A, Class B and Class Y shares. Class A shares
are sold with a front-end sales charge. Class B shares, which the
Fund began offering on March 20, 1995, may be subject to a
contingent deferred sales charge. Class B shares automatically
convert to Class A after eight years. Class Y shares, which the
Fund also began offering on March 20, 1995, have no sales charge
and are offered only to qualifying institutional investors.
All classes of shares have identical voting, dividend, liquidation
and other rights, and the same terms and conditions, except that
the level of distribution fee, transfer agency fee and service fee
(class specific expenses) differs among classes. Income, expenses
(other than class specific expenses) and realized and unrealized
gains or losses on investments are allocated to each class of
shares based upon its relative net assets.
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.
Option 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
<PAGE>
PAGE 14
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.
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 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.
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.
<PAGE>
PAGE 15
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. 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 $512,661 and accumulated net realized
gain has been increased by $101,051, resulting in a net
reclassification adjustment to increase additional paid-in capital
by $411,610.
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.
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 a prior agreement that ended March 19, 1995, the
Fund paid AEFC a fee for managing its investments, recordkeeping
and other specified services. The fee was 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 was 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 was 0.08% of the Fund's average daily net assets after
<PAGE>
PAGE 16
deducting 1% from the performance difference. If the performance
difference was less than 1%, the adjustment would have been zero.
The adjustment decreased the fee by $738,312 for the year ended
Oct. 31, 1995.
Also under terms of the prior agreement, the Fund paid AEFC 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.
Effective March 20, 1995, when the Fund began offering multiple
classes of shares, the Fund entered into agreements with AEFC for
managing its portfolio, providing administrative services and
serving as transfer agent as follows: Under its Investment
Management Services Agreement, AEFC determines which securities
will be purchased, held or sold. The management fee is a percentage
of the Fund's average daily net assets in reducing percentages from
0.53% to 0.4% annually. The performance incentive adjustment
remains unchanged from the prior agreement.
Under an Administrative Services Agreement, the Fund pays AEFC for
administration and accounting services at a percentage of the
Fund's average daily net assets in reducing percentages from 0.04%
to 0.02% annually.
Under a separate Transfer Agency Agreement, AEFC maintains
shareholder accounts and records. The Fund pays AEFC an annual fee
per shareholder account for this service as follows:
o Class A $15
o Class B $16
o Class Y $15
Also effective March 20, 1995, the Fund entered into agreements
with American Express Financial Advisors Inc. for distribution and
shareholder servicing-related services as follows: Under a Plan
and Agreement of Distribution, the Fund pays a distribution fee at
an annual rate of 0.75% of the Fund's average daily net assets
attributable to Class B shares for distribution-related services.
Under a Shareholder Service Agreement, the Fund pays a fee for
service provided to shareholders by financial advisors and other
servicing agents. The fee is calculated at a rate of 0.175% of the
Fund's average daily net assets attributable to Class A and Class B
shares.
AEFC will assume and pay any expenses (except taxes and brokerage
commissions) that exceed the most restrictive applicable state
expense limitation.
Sales charges received by American Express Financial Advisors Inc.
for distributing Fund shares were $2,808,479 for Class A and $4,170
for Class B for the year ended Oct. 31, 1995. The Fund also pays
custodian fees to American Express Trust Company, an affiliate of
AEFC.
<PAGE>
PAGE 17
During the year ended Oct. 31, 1995, the Fund's custodian and
transfer agency fees were reduced by $13,795 as a result of
earnings credits from overnight cash balances.
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 plan expense amounted
to $18,663 for the year ended Oct. 31, 1995.
___________________________________________________________________
3. Securities transactions
Cost of purchases and proceeds from sales of securities (other than
short-term obligations) aggregated $1,919,457,082 and
$1,608,877,026, respectively, for the year ended Oct. 31, 1995.
Realized gains and losses are determined on an identified cost
basis.
Brokerage commissions paid to brokers affiliated with AEFC were
$378,480 for the year ended Oct. 31, 1995.
___________________________________________________________________
4. Capital share transactions
Transactions in shares of capital stock for the years indicated are
as follows:
<TABLE>
<CAPTION>
_______________________________________________________________________________________
Year ended Oct. 31, 1995 Year ended
10/31/94
Class A Class B* Class Y* Class A
_______________________________________________________________________________________
<S> <C> <C> <C> <C>
Sold 21,417,041 1,499,973 40,820,045 26,559,784
Issued for reinvested 12,361,651 8,607 606,754 11,576,290
distributions
Redeemed (55,899,864) (30,232) (4,451,233) (13,522,239)
_______________________________________________________________________________________
Net increase (decrease) (22,121,172) 1,478,348 36,975,566 24,613,835
_______________________________________________________________________________________
*Inception date was March 20, 1995.
</TABLE>
___________________________________________________________________
5. Lending of portfolio securities
At Oct. 31, 1995, securities valued at $46,961,550 were on loan to
brokers. For collateral, the Fund received $49,285,600 in cash.
Income from securities lending amounted to $714,751 for the year
ended Oct. 31, 1995. 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.
___________________________________________________________________
6. Option contracts written
The number of contracts and premium amounts associated with option
contracts written is as follows:
<PAGE>
PAGE 18
<TABLE>
<CAPTION>
Year ended Oct. 31, 1995
______________________________________________________
Puts Calls
Contracts Premium Contracts Premium
______________________________________________________________________________
<S> <C> <C> <C> <C>
Balance Oct. 31, 1994 16,075 $ 941,712 13,750 $ 848,471
Opened 14,090 1,248,794 30,726 1,834,074
Closed (7,471) (863,178) (14,750) (991,091)
Exercised (5,354) (418,526) (4,335) (387,990)
Expired (17,340) (908,802) (25,391) (1,303,464)
______________________________________________________________________________
Balance Oct. 31, 1995 -- $ -- -- $ --
______________________________________________________________________________
</TABLE>
___________________________________________________________________
7. Foreign currency contracts
At Oct. 31, 1995, the Fund had entered into a foreign currency
exchange contract that obligates the Fund to deliver currency at a
specified future date. The terms of the open contract is as
follows:
<TABLE>
<CAPTION>
Exchange date Currency to be Currency to be Unrealized
delivered received appreciation/
depreciation
___________________________________________________________________________
<S> <C> <C> <C>
Nov. 3, 1995 4,012,052 2,850,076 $ --
Deutsche Mark U.S. Dollar
___________________________________________________________________________
</TABLE>
___________________________________________________________________
8. Financial highlights
"Financial highlights" showing per share data and selected
information is presented on pages 6 and 7 of the prospectus.
<PAGE>
PAGE 19
<TABLE>
<CAPTION>
Investments in securities
IDS Stock Fund, Inc. (Percentages represent value of
Oct. 31, 1995 investments compared to net assets)
Investments in securities of unaffiliated issuers
_____________________________________________________________________________________________________________________________
Common stocks (82.1%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Aerospace & defense (3.8%)
Boeing 300,000 $ 19,687,500
General Dynamics 222,800 12,337,550
General Motors Cl H 600,000 25,200,000
Raytheon 500,000 21,812,500
United Technologies 300,000 26,625,000
______________
Total 105,662,550
_____________________________________________________________________________________________________________________________
Automotive & related (1.2%)
General Motors 200,000 8,750,000
Genuine Parts 600,000 23,775,000
______________
Total 32,525,000
_____________________________________________________________________________________________________________________________
Banks and savings & loans (6.2%)
Bank of Boston 250,000 11,125,000
BankAmerica 500,000 28,750,000
First Chicago 500,000 33,937,500
Morgan (JP) 400,000 30,850,000
NationsBank 400,000 26,300,000
Signet Banking 500,000 (c) 11,875,000
State Street Boston 700,000 27,212,500
______________
Total 170,050,000
_____________________________________________________________________________________________________________________________
Beverages & tobacco (2.9%)
PepsiCo 400,000 21,100,000
Philip Morris 400,000 33,800,000
UST 800,000 24,000,000
______________
Total 78,900,000
_____________________________________________________________________________________________________________________________
Chemicals (2.1%)
duPont (EI) deNemours 300,000 18,712,500
Hercules 400,000 21,350,000
Nalco Chemical 400,000 12,000,000
Praxair 200,000 5,400,000
______________
Total 57,462,500
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
<PAGE>
PAGE 20
Communications equipment (0.6%)
General Instrument 253,100 (b) 4,808,900
Northern Telecom 325,000 11,700,000
______________
Total 16,508,900
_____________________________________________________________________________________________________________________________
Computers & office equipment (3.8%)
Amer Power Conversion 600,000 (b,c) 6,150,000
Cisco Systems 300,000 23,250,000
COMPAQ Computer 550,000 30,662,500
General Motors Cl E 200,000 9,425,000
Pitney Bowes 500,000 21,812,500
Silicon Graphics 141,700 (b) 4,711,525
Sterling Software 200,000 (b) 9,225,000
______________
Total 105,236,525
_____________________________________________________________________________________________________________________________
Energy (3.1%)
Amoco 400,000 25,550,000
Mobil 200,000 20,150,000
TOTAL Cl B 700,000 21,612,500
Ultramar 316,400 7,712,250
Union Texas Petroleum 500,000 9,000,000
______________
Total 84,024,750
_____________________________________________________________________________________________________________________________
Financial services (3.6%)
Block (H&R) 400,000 16,500,000
Crown Amer REIT 400,000 3,050,000
Duke Realty Investors 200,000 6,125,000
Equity Residential REIT 200,000 5,600,000
Mid-Amer Apart Communities REIT 264,600 6,085,800
Mutual Risk Management 400,000 14,750,000
Omega Healthcare Investors 200,000 5,075,000
Simon Property REIT 500,000 11,625,000
Storage USA REIT 200,000 5,850,000
Travelers 500,000 25,250,000
______________
Total 99,910,800
_____________________________________________________________________________________________________________________________
Food (2.2%)
ConAgra 500,000 19,312,500
General Mills 400,000 22,950,000
Heinz (HJ) 400,000 18,600,000
______________
Total 60,862,500
_____________________________________________________________________________________________________________________________
Health care (6.9%)
Amer Home Products 300,000 26,587,500
Amgen 300,000 (b) 14,400,000
Johnson & Johnson 400,000 32,600,000
Medtronic 200,000 11,550,000
Merck 600,000 34,500,000
Pfizer 600,000 34,425,000
Schering-Plough 650,000 34,856,250
______________
Total 188,918,750
Health care services (1.2%)
Columbia Healthcare 372,500 18,299,062
Service Corp Intl 400,000 16,050,000
______________
Total 34,349,062
_____________________________________________________________________________________________________________________________
Industrial equipment & services (2.6%)
Amer Standard 600,000 (b) 16,050,000
Caterpillar 225,000 12,628,125
Deere 175,000 15,640,625
Illinois Tool Works 496,000 28,830,000
______________
Total 73,148,750
_____________________________________________________________________________________________________________________________
Industrial transportation (1.7%)
Norfolk Southern 300,000 23,175,000
Union Pacific 350,000 22,881,250
______________
Total 46,056,250
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE 21
Insurance (4.4%)
Amer Intl Group 300,000 25,312,500
General Re 225,000 32,596,875
Lincoln Natl 600,000 26,775,000
Prudential Reinsurance Holdings 536,600 (b) 10,933,225
Unum 500,000 26,312,500
______________
Total 121,930,100
_____________________________________________________________________________________________________________________________
Media (3.6%)
Amer Greetings Cl A 902,100 28,416,150
Bell Cablemedia 160,000 (b) 2,380,000
Liberty Media Cl A 125,000 (b) 3,078,125
McGraw-Hill 250,000 20,468,750
Tele-Communications Cl A 500,000 (b) 8,500,000
Time Warner 550,000 20,075,000
Viacom Cl B 300,000 (b) 15,000,000
______________
Total 97,918,025
_____________________________________________________________________________________________________________________________
Metals (2.3%)
Aluminum Co Amer 312,800 15,952,800
Freeport-McMoRan Cooper & Gold Cl B 1,000,000 22,750,000
Santa Fe Pacific Gold 1,800,000 17,775,000
UCAR Intl 276,100 (b) 7,868,850
______________
Total 64,346,650
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (1.2%)
General Electric 525,000 33,206,250
_____________________________________________________________________________________________________________________________
Paper & packaging (2.1%)
Crown Cork & Seal 600,000 (b) 20,925,000
Kimberly-Clark 500,000 36,312,500
______________
Total 57,237,500
Retail (4.4%)
Gap 750,000 29,531,250
Home Depot 600,000 22,350,000
Intimate Brands 800,000 (b,c) 13,400,000
Office Depot 709,900 (b) 20,320,888
Penney (JC) 550,000 23,168,750
Pep Boy Manny Moe & Jack 600,000 13,125,000
______________
Total 121,895,888
_____________________________________________________________________________________________________________________________
Soaps & cosmetics (2.4%)
Duracell 500,000 26,187,500
Gillette 600,000 29,025,000
Procter & Gamble 145,600 11,793,600
______________
Total 67,006,100
_____________________________________________________________________________________________________________________________
Textiles & apparel (0.7%)
Warnaco Group Cl A 800,000 18,600,000
_____________________________________________________________________________________________________________________________
Utilities - electric (0.5%)
Powergen 775,000 (c) 12,884,375
_____________________________________________________________________________________________________________________________
Utilities - natural gas (0.7%)
Columbia Gas System 500,000 (b) 19,250,000
_____________________________________________________________________________________________________________________________
Utilities - telephone (5.3%)
AirTouch Communications 900,000 (b) 25,650,000
AT&T 400,000 25,600,000
BellSouth 400,000 30,600,000
MFS Communications 187,557 (b) 7,572,614
SBC Communications 500,000 27,937,500
U S WEST 600,000 28,575,000
______________
Total 145,935,114
_____________________________________________________________________________________________________________________________
Foreign (12.6%)(d)
British Petro ADR 90,000 7,942,500
Central Puerto ADR 500,000 (e) 7,562,500
Ericsson (LM) ADR 9,000,000 27,000,000
General Cable 910,000 (b) 13,536,250
Grupo Carso ADR 275,000 (b) 2,879,297
<PAGE>
PAGE 22
Madeco ADR 175,000 4,353,125
Millicom Intl Cellular 500,000 (b) 16,500,000
National Power 850,000 10,625,000
Nedcor 110,000 (b) 6,325,000
Nokia Perferred 500,000 27,875,000
NYNEX CableComms Group 467,500 (b) 9,525,313
Qantas Airways 275,500 (b,e) 4,868,800
Repsol ADR 800,000 23,700,000
Royal Dutch Petroleum 350,000 43,006,250
Schlumberger 500,000 31,125,000
SGL Carbon 370,200 (b,e) 24,272,903
SmithKline Beecham 600,000 31,125,000
Tele Italia Mobile 10,000,000 11,110,000
Telecom Italia 10,000,000 (b) 11,800,000
Veba 500,000 20,526,000
Videotron Holdings ADR 780,000 (b) 10,286,250
______________
Total 345,944,188
_____________________________________________________________________________________________________________________________
Total common stocks of unaffiliated issuers
(Cost: $1,921,769,599) $2,259,770,527
_____________________________________________________________________________________________________________________________
Preferred stocks (4.7%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
Alco Standard
6.50% Cm Cv 193,900 $ 16,578,450
Best Buy
6.50% Cm Cv 220,000 (c) 8,965,000
Ceridan
$2.75 Cm Cv 275,000 26,812,500
COINTEL
5.04% Cv 225,000 (f) 9,675,000
First Chicago Nextell
5.50% Cm Cv 900,000 (c) 15,862,500
General Motors
3.25% Cm Cv 300,000 20,100,000
Kenetech
$1.67 Cm Cv 783,000 (f) 4,208,625
MascoTech
6% Cm Cv 280,400 3,505,000
MFS Communication
2.68% Cm Cv 575,000 22,712,500
_____________________________________________________________________________________________________________________________
Total preferred stocks
(Cost: $129,412,934) $ 128,419,575
_____________________________________________________________________________________________________________________________
Bonds (7.4%)
_____________________________________________________________________________________________________________________________
Principal
Issuer and coupon rate amount Value(a)
_____________________________________________________________________________________________________________________________
Domestic (4.8%)
Baby Superstore
4.875% Cv 2000 $10,000,000 $ 10,600,000
Conner Peripherals
6.75% Cv 2001 10,000,000 9,425,000
Equitable Companies
6.125% Cv 2024 20,000,000 20,450,000
Intl Cable Telephone
7.25% Cv 2005 10,700,000 12,318,375
NAC Re
5.25% Cv 2002 15,000,000 (e) 14,887,500
Roche Holdings
Zero Coupon
7% Cv 2010 30,000,000 (e,g) 12,412,500
Rogers Communications
Zero Coupon
4.74% Cv 2013 50,000,000 (g) 17,625,000
SynOptics Communications
5.25% 2003 20,000,000 (e) 22,400,000
U.S. Filter
6% Cv 2005 10,000,000 (e) 10,512,500
______________
Total 130,630,875
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE 23
Foreign (2.6%)(d)
Banco Nacional de Mexico
7% Cv 1999 7,500,000 (e) 6,000,000
Grand Metropolitan
6.50% Cv 2000 15,000,000 (e) 17,100,000
Mutual Risk
Zero Coupon
7.03% Cv 2010 42,200,000 (e,g) 15,139,250
Sahaviriya Steel
3.50% Cv 2005 10,000,000 (c,e) 8,500,000
Sapi
7.50% Cv 2002 11,000,000 (e) 11,206,250
Scandinavian Broadcasting
7.25% Cv 2005 13,260,000 14,221,350
______________
Total 72,166,850
_____________________________________________________________________________________________________________________________
Total bonds
(Cost: $195,988,314) $ 202,797,725
_____________________________________________________________________________________________________________________________
</TABLE>
<TABLE>
<CAPTION>
Options purchased (0.5%)
_____________________________________________________________________________________________________________________________
Issuer Number Exercise Expiration Value(a)
of contracts price date
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Put
S&P 500 6,500 $585 Nov. 1995 $ 4,793,750
9,000 585 Dec. 1995 9,562,500
_____________________________________________________________________________________________________________________________
Total options purchased
(Cost: $15,730,750) $ 14,356,250
_____________________________________________________________________________________________________________________________
</TABLE>
<TABLE>
<CAPTION>
Short-term securities (6.1%)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
U.S. government agencies (0.5%)
Federal Home Loan Bank Disc Note
11-06-95 5.65% $ 7,400,000 $ 7,394,214
U.S. Treasury Bills
01-11-96 5.32 5,000,000 4,947,000
______________
Total 12,341,214
_____________________________________________________________________________________________________________________________
Commercial paper (5.6%)
A.I. Credit
12-04-95 5.75 6,100,000 6,068,016
Aon
11-17-95 5.72 8,090,000 8,069,613
AT&T Capital
11-01-95 5.73 10,200,000 10,200,000
CAFCO
11-15-95 5.75 4,200,000 (h) 4,190,657
12-08-95 5.75 9,300,000 9,245,422
Campbell Soup
11-30-95 5.70 4,900,000 (h) 4,875,338
Cargill
11-10-95 5.74 5,000,000 4,992,850
Ciesco LP
11-09-95 5.72 4,000,000 3,994,960
Colgate-Palmolive
11-27-95 5.77 5,300,000 (h) 5,278,067
Commerzbank U.S. Finance
11-10-95 5.76 4,000,000 3,992,360
CPC Intl
11-10-95 5.73 6,700,000 (h) 6,690,486
<PAGE>
PAGE 24
Dean Witter, Discover & Co.
01-18-96 5.76 3,500,000 3,454,531
Deutsche Bank Financial
11-09-95 5.75 6,000,000 5,992,373
11-20-95 5.76 8,000,000 7,975,849
General Electric Capital
11-29-95 5.76 3,900,000 3,882,649
Goldman Sachs Group
11-16-95 5.74 7,100,000 7,080,129
11-22-95 5.75 7,900,000 7,873,640
Household Finance
11-22-95 5.76 4,200,000 4,185,962
Lincoln Natl
11-14-95 5.73 3,100,000 (h) 3,092,319
Merrill Lynch
12-01-95 5.77 3,100,000 3,085,197
Norfolk Southern
12-13-95 5.70 8,747,000 (h) 8,682,101
PACCAR Financial
11-20-95 5.75 4,200,000 4,187,321
SAFECO Credit
11-16-95 5.75 4,400,000 4,389,513
11-21-95 5.75 7,000,000 6,977,756
Siemens
11-16-95 5.74 2,200,000 2,194,766
USAA Capital
11-28-95 5.74 8,000,000 7,965,740
Wachovia Bank
12-12-95 5.75 6,500,000 6,499,920
______________
Total 155,117,535
_____________________________________________________________________________________________________________________________
Total short-term securities
(Cost: $167,476,969) $ 167,458,749
_____________________________________________________________________________________________________________________________
Total investments in securities of unaffiliated issuers
(Cost: $2,430,378,566) $2,772,802,826
_____________________________________________________________________________________________________________________________
Investments in securities of affiliated issuer (i)
_____________________________________________________________________________________________________________________________
Common stock (0.9%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
Lukens 800,000 $ 24,600,000
_____________________________________________________________________________________________________________________________
Total investments in securities of affiliated issuer
(Cost: $27,342,800) $ 24,600,000
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $2,457,721,366)(j) $2,797,402,826
_____________________________________________________________________________________________________________________________
Notes to investments in securities
_____________________________________________________________________________________________________________________________
(a) Securities are valued by procedures described in Note 1 to the financial statements.
(b) Presently non-income producing.
(c) Security is partially or fully on loan. See Note 5 to the financial statements.
(d) Foreign security values and principal amounts are stated in U.S. dollars.
(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 stocks.
(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, 1995, the cost of securities for federal income tax purposes was $2,461,485,805
and the aggregate gross unrealized appreciation and depreciation based on that cost was:
Unrealized appreciation $436,034,133
Unrealized depreciation (100,117,112)
_____________________________________________________________________________________________
Net unrealized appreciation $335,917,021
_____________________________________________________________________________________________
</TABLE>
<PAGE>
PAGE 25
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 26
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
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
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
<PAGE>
PAGE 27
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 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 Select 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
IDS Blue Chip Advantage Fund
Invests in selected stocks from a major market index. Securities
purchased are those recommended by our 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 Equity Value Fund
Invests primarily in undervalued common stocks that offer potential
for growth of capital and income.
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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.
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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.
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 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
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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.
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 advisor or writing to American Express Shareholder
Service, P.O. Box 534, Minneapolis, MN 55440-0534. Read it
carefully before you invest or send money.
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PAGE 30
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 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 advisor on how to report distributions for
state and local purposes.
IDS Stock Fund, Inc.
Fiscal year ended Oct. 31, 1995
Class A
Income distributions taxable as dividend income, 73.61% qualifying
for deduction by corporations.
Payable date Per share
Dec. 29, 1994 $0.36500
March 30, 1995 0.12226
June 28, 1995 0.11105
Sept. 28, 1995 0.11727
Total $0.71558
Capital gain distribution taxable for long-term capital gain.
Payable date Per share
Dec. 29, 1994 $1.28788
Total distributions $2.00346
The distribution of $1.65288 per share, payable Dec. 29, 1994,
consisted of $0.14000 derived from net investment income, $0.22500
from net short-term capital gains (a total of $0.36500 taxable as
dividend income) and $1.28788 from net long-term capital gains.
Class B
Income distributions taxable as dividend income, 73.61% qualifying
for deduction by corporations.
March 30, 1995 0.12118
June 28, 1995 0.09275
Sept. 28, 1995 0.09412
Total distributions $0.30805
Class Y
Income distributions taxable as dividend income, 73.61% qualifying
for deduction by corporations.
March 30, 1995 0.12321
June 28, 1995 0.11688
Sept. 28, 1995 0.12827
Total distributions $0.36836
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PAGE 31
Quick telephone reference
American Express 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
American Express Shareholder Service
Fund performance, objectives and account inquiries
612-671-3733
TTY Service
For the hearing impaired
800-846-4852
American Express 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
AMERICAN
EXPRESS
FINANCIAL
ADVISORS
IDS Stock Fund
IDS Tower 10
Minneapolis, MN 55440-0010
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PAGE 32
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 a 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.
