AXPSM
Stock Fund

2000 ANNUAL REPORT
(PROSPECTUS ENCLOSED)


American
  Express(R)
Funds

(icon of) magnifying glass


AXP Stock Fund seeks to provide  shareholders  with current income and growth of
capital.

(This annual report includes a prospectus that describes in detail the Fund's
objective, investment strategy, risks, sales charges, fees and other matters of
interest. Please read the prospectus carefully before you invest or send money.)



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 AXP 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,  multinational
companies are well-positioned to prosper in the 21st century.

Table of Contents

2000 ANNUAL REPORT
The purpose of this annual report is to tell investors how the Fund performed.

From the Chairman                        3
From the Portfolio Manager               3
Fund Facts                               5
The 10 Largest Holdings                  6
Making the Most of the Fund              7
The Fund's Long-term Performance         8
Independent Auditors' Report (Fund)      9
Financial Statements (Fund)             10
Notes to Financial Statements (Fund)    13
Independent Auditors' Report
  (Portfolio)                           20
Financial Statements (Portfolio)        21
Notes to Financial Statements
  (Portfolio)                           23
Investments in Securities               26
Federal Income Tax Information          30


AXP STOCK FUND



(picture of) Arne H. Carlson
Arne H. Carlson
Chairman of the board

From the Chairman
The financial  markets have always had their ups and downs, but in recent months
volatility  has become  more  frequent  and  intense.  While no one can say with
certainty what the markets will do, American Express Financial Corporation,  the
Fund's investment manager, expects economic growth to continue, accompanied by a
modest rise in long-term interest rates. But no matter what transpires,  this is
a great time to take a close look at your goals and  investments.  We  encourage
you to:

o Consult a professional investment advisor who can help you cut through
  mountains of data.
o Set  financial  goals that extend  beyond those  achievable through retirement
  plans of your employer.
o Learn as much as you can about your current investments.

The  portfolio  manager's  letter that  follows  provides a review of the Fund's
investment strategies and performance. The annual report contains other valuable
information as well. The Fund's prospectus  describes its investment  objectives
and how it intends to achieve those objectives.  As experienced  investors know,
information is vital to making good investment decisions.

So, take a moment and decide again whether the Fund's investment  objectives and
management  style  fit  with  your  other  investments  to help you  reach  your
financial  goals.  And make it a  practice  on a regular  basis to  assess  your
investment options.

On behalf of the Board,



Arne H. Carlson


(picture of) G. Michael Kennedy
G. Michael Kennedy
Portfolio manager

From the Portfolio Manager
In a volatile but overall  positive period for stocks,  AXP Stock Fund enjoyed a
productive  fiscal year as its Class A shares generated a total return of 16.59%
(excluding  the sales  charge) from October 1999 through  September  2000.  This
compares with a 13.30% return for the Standard & Poor's 500 (an unmanaged  group
of stocks  commonly  used to measure the  performance  of the stock  market as a
whole).

The stock  market got off to a  spectacular  start,  rallying  furiously  in the
fourth  quarter  of 1999 and  into  the  early  days of  January.  After a

                                                           ANNUAL REPORT - 2000



brief setback,  the market then managed to reach an all-time high in March.  But
by that time,  concerns about higher interest rates set in and ultimately led to
a sharp downturn in the spring.

By summer's end,  stocks had regained  much of the lost ground as  interest-rate
worries faded away. Taking their place,  though,  were doubts about the strength
of upcoming  corporate  profits,  which quickly drove the market into retreat in
September.

WINNERS AND LOSERS
The Fund's  performance during the 12 months roughly followed the pattern of the
market.  But,  thanks to  generally  good stock  selection  and some  beneficial
portfolio  shifts,  the Fund was able to take  advantage of market upturns while
also  holding up a bit better  during the  downturns.  A  prominent  example was
utilities stocks, which I emphasized in the portfolio. They turned out to be the
best-performing  sector of the market,  and gave the Fund a nice  boost.  On the
other hand, I held relatively few telecommunications  stocks, which were notably
poor performers for the period.

Technology,  the largest area of investment  for the Fund as well as the largest
sector of the market,  went  through some  stunning  ups and downs,  but, on the
whole, made a strong contribution to performance.  In addition, avoiding some of
the  stocks  that  experienced  sharp  drops and a  decision  to reduce  overall
technology holdings late in the period worked to the Fund's advantage.

Looking at other  sectors,  financial  services and health care stocks  provided
good  results.  I added  to those  holdings  last  summer.  On the  other  hand,
investments in capital goods and consumer  staples stocks finished only slightly
in the plus column,  while basic  materials  and consumer  cyclical  stocks were
negative performers for the Fund.

As we begin a new fiscal year, I think the  investment  environment  still looks
reasonably  good,  though I expect that  market  volatility  will  remain  high,
especially  over the near term.  On a more general  note, I also would point out
that it's  unrealistic to expect a continuation  of the  extraordinarily  strong
gains we've seen from stocks in recent years,  as the  confluence of events that
produced those returns is unlikely to be repeated anytime soon.



G. Michael Kennedy

AXP STOCK FUND



Fund Facts

Class A -- 12-month performance
(All figures per share)

Net asset value (NAV)
Sept. 30, 2000                                               $27.12
Sept. 30, 1999                                               $26.14
Increase                                                     $ 0.98

Distributions -- Oct. 1, 1999 - Sept. 30, 2000
From income                                                  $ 0.18
From capital gains                                           $ 3.14
Total distributions                                          $ 3.32
Total return**                                              +16.59%

Class B -- 12-month performance
(All figures per share)
Net asset value (NAV)
Sept. 30, 2000                                               $26.90
Sept. 30, 1999                                               $25.97
Increase                                                     $ 0.93

Distributions -- Oct. 1, 1999 - Sept. 30, 2000
From income                                                  $   --
From capital gains                                           $ 3.14
Total distributions                                          $ 3.14
Total return**                                              +15.73%

Class C -- June 26, 2000* - Sept. 30, 2000
(All figures per share)
Net asset value (NAV)
Sept. 30, 2000                                               $26.88
June 26, 2000*                                               $26.70
Increase                                                     $ 0.18

Distributions -- June 26, 2000* - Sept. 30, 2000
From income                                                  $ 0.04
From capital gains                                           $   --
Total distributions                                          $ 0.04
Total return**                                               +0.81%***

Class Y -- 12-month performance
(All figures per share)
Net asset value (NAV)
Sept. 30, 2000                                               $27.13
Sept. 30, 1999                                               $26.14
Increase                                                     $ 0.99

Distributions-- Oct. 1, 1999 - Sept. 30, 2000
From income                                                  $ 0.23
From capital gains                                           $ 3.14
Total distributions                                          $ 3.37
Total return**                                              +16.80%

  *Inception date.
 **The  total  return  is  a  hypothetical  investment  in  the  Fund  with  all
   distributions  reinvested.  Returns do not include  sales load.  The
   prospectus discusses the effect of sales charges, if any, on the various
   classes.
***The total return for Class C is not annualized.

                                                           ANNUAL REPORT - 2000



The 10 Largest Holdings
                                         Percent                  Value
                                     (of net assets)     (as of Sept. 30, 2000)
 American Intl Group                      3.40%              $162,279,972
 General Electric                         3.26                155,756,250
 Cisco Systems                            2.89                138,125,000
 Microsoft                                2.78                132,550,000
 Citigroup                                2.49                118,937,500
 Corning                                  2.49                118,800,000
 Pfizer                                   2.38                113,467,188
 Exxon Mobil                              2.23                106,421,221
 Enron                                    2.20                105,150,000
 Intel                                    2.18                104,062,500

For further detail about these  holdings,  please refer to the section  entitled
"Investments in Securities."

(icon of) pie chart

The 10 holdings listed here  make up 26.30% of net assets

AXP STOCK FUND



Making the Most of the Fund

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. The chart below shows how dollar-cost averaging works. In these
three  hypothetical   scenarios,   you  will  see  six  months  of  share  price
fluctuations.

This strategy  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
even when the price of your shares  falls or the market  declines,  it can be an
effective way to accumulate shares to meet your long-term goals.

                        How dollar-cost averaging works

       Jan  Feb  Mar  Apr  May  Jun
$15                   $16  $18  $20
$10    $10  $12  $14
$ 5

Accumulated shares*       Average market           Your average
                          price per share          cost per share

      42.25                    $15                    $14.20
_______________________________________________________________________________

       Jan  Feb  Mar  Apr  May  Jun
$15
$10    $10                      $10
$ 5         $8   $5   $5   $8

Accumulated shares*       Average market           Your average
                          price per share          cost per share

      85.0                     $7.66                  $7.05
_______________________________________________________________________________

       Jan  Feb  Mar  Apr  May  Jun
$15
$10    $10  $8   $6             $7
$ 5                   $4   $4

Accumulated shares*       Average market           Your average
                          price per share          cost per share

     103.5                    $6.50                    $5.80
_______________________________________________________________________________
$100 invested per month. Total invested: $600.

* Shares purchased is determined by dividing the amount invested per month by
  the current share price.

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.  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.

                                                           ANNUAL REPORT - 2000



The Fund's Long-term Performance

           How your $10,000 has grown in AXP Stock Fund
$70,000


$60,000

                                                           X
                                                      S&P 500
$50,000                                                Index

                                                                         X
                                                                      $40,382
                                                               AXP Stock Fund
                                                                      Class A
$40,000

                                                          X
                                                  Lipper Large-Cap
                                                     Core Index
$30,000


$20,000


$9,425


10/1/90  9/91  9/92   9/93   9/94   9/95   9/96   9/97   9/98   9/99     9/00

Average Annual Total Returns (as of Sept. 30, 2000)

               1 year      5 years        10 years (A)  Since inception (B&Y)
 Class A       +9.88%      +14.89%          +14.98%               --%
 Class B      +11.73%      +15.27%              --%           +16.51%*
 Class Y      +16.80%      +16.41%              --%           +17.64%*

* Inception date was March 20, 1995.

Assumes:  Holding  period from 10/1/90 to 9/30/00.  Returns do not reflect taxes
payable  on   distributions.   Reinvestment  of  all  income  and  capital  gain
distributions for the Fund has a value of $27,230.  Also see "Past  Performance"
in the Fund's current prospectus.

On the graph  above you can see how the  Fund's  total  return  compared  to two
widely cited unmanaged performance indexes, the Standard & Poor's 500 Index (S&P
500 Index) and the Lipper  Large-Cap  Core Index.  In  comparing  AXP Stock Fund
(Class A) to the two  indexes,  you should  take into  account the fact that the
Fund's  performance  reflects  the  maximum  sales  charge of 5.75%,  while such
charges are not  reflected in the  performance  of the  indexes.  Class C became
effective June 26, 2000 and therefore performance information is not presented.

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 impact of the  applicable  sales  charge up to a maximum of
5.75%. This was a period of widely fluctuating security prices. Past performance
is no guarantee of future results.

Standard & Poor's 500 Index (S&P 500 Index), an unmanaged list of common stocks,
is  frequently  used as a  general  measure  of  market  performance.  The index
reflects  reinvestment of all  distributions  and changes in market prices,  but
excludes brokerage commissions or other fees. However, the S&P 500 companies may
be generally larger than those in which the Fund invests.

Lipper  Large-Cap  Core Index,  an  unmanaged  index  published  by Lipper Inc.,
includes the 30 largest funds that are generally  similar to the Fund,  although
some  funds in the index may have  somewhat  different  investment  policies  or
objectives.

AXP STOCK FUND



The  financial  statements   contained  in  Post-Effective   Amendment  #101  to
Registration  Statement  No.  2-11358 filed on or about  November 22, 2000,  are
incorporated herein by reference.



Federal Income Tax Information

(Unaudited)

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 are reported to you on Form 1099-DIV,
Dividends and Distributions. Shareholders should consult a tax advisor on how to
report distributions for state and local tax purposes.

AXP Stock Fund, Inc.
Fiscal year ended Sept. 30, 2000

Class A
Income distributions taxable as dividend income, 37.53% qualifying for deduction
by corporations.

Payable date                                           Per share
Dec. 22, 1999                                           $0.04737
March 24, 2000                                           0.03038
June 22, 2000                                            0.05473
Sept. 22, 2000                                           0.05188
Total                                                   $0.18436

Capital gain distribution taxable as long-term capital gain.

Payable date                                           Per share
Dec. 22, 1999                                           $3.13556
Total distributions                                     $3.31992


Class B
Capital gain distribution taxable as long-term capital gain.

Payable date                                           Per share
Dec. 22, 1999                                           $3.13556
Total distributions                                     $3.13556


Class C
Income distributions taxable as dividend income, 37.53% qualifying for deduction
by corporations.

Payable date                                          Per share
Sept. 22, 2000                                         $0.03629
Total distributions                                    $0.03629

AXP STOCK FUND



Class Y
Income distributions taxable as dividend income, 37.53% qualifying for deduction
by corporations.

Payable date                                          Per share
Dec. 22, 1999                                          $0.05779
March 24, 2000                                          0.04107
June 22, 2000                                           0.06539
Sept. 22, 2000                                          0.06282
Total                                                  $0.22707

Capital gain distribution taxable as long-term capital gain.

Payable date                                          Per share
Dec. 22, 1999                                          $3.13556
Total distributions                                    $3.36263


                                                         ANNUAL REPORT - 2000



American
  Express(R)
Funds

AXP Stock Fund
70100 AXP Financial Center
Minneapolis, MN 55474


                                                                  PRSRT STD AUTO
                                                                    U.S. POSTAGE
                                                                          PAID
                                                                       AMERICAN
                                                                        EXPRESS

                                                                    AMERICAN
                                                                     (R)EXPRESS


                                                               S-6351 U (11/00)

This report must be accompanied  or preceded by the Fund's  current  prospectus.
Distributed by American Express  Financial  Advisors Inc. Member NASD.  American
Express Company is separate from American Express Financial Advisors Inc. and is
not a broker-dealer.



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)   There are pictures, icons                   2)  Each picture, icon and
     and graphs throughout the                       graph is described in
     annual report.                                  parentheses.