Growth Stock

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Dictionary Says

Definition of 'Growth Stock'

Shares in a company whose earnings are expected to grow at an above-average rate relative to the market.

Also known as a "glamor stock".
Investopedia Says

Investopedia explains 'Growth Stock'

A growth stock usually does not pay a dividend, as the company would prefer to reinvest retained earnings in capital projects. Most technology companies are growth stocks.

Note that a growth company's stock is not always classified as growth stock. In fact, a growth company's stock is often overvalued.

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Related Definitions

  1. Growth Fund

    A diversified ...
  2. Growth Rates

    The amount of ...
  3. Price-Earnings Ratio - P/E Ratio

    A valuation ...
  4. Growth At A Reasonable Price - GARP

    An equity ...
  5. Value Stock

    A stock that ...
  6. Growth Company

    Any firm whose ...
  7. Growth Industry

    A sector of the ...
  8. Long-Term Growth - LTG

    An investing ...
  9. Investing Style

    In the context ...
  10. Mid-Value Stock

    A description of ...

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  6. Venturing Into Early-Stage Growth Stocks

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  7. How To Use Price-To-Sales Ratios To Value Stocks

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  8. How To Use The P/E Ratio And PEG To Tell A Stock's Future

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  9. Viewing The Market As Organized Chaos

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  10. Is Growth Always A Good Thing?

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