Growth Stock

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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 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.

RELATED TERMS
  1. Mid-Value Stock

    A description of the shares of a company with a medium (or mid-sized) ...
  2. Growth Fund

    A diversified portfolio of stocks that has capital appreciation ...
  3. Price-Earnings Ratio - P/E Ratio

    A valuation ratio of a company's current share price compared ...
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    An equity investment strategy that seeks to combine tenets of ...
  5. Value Stock

    A stock that tends to trade at a lower price relative to it's ...
  6. Growth Rates

    The amount of increase that a specific variable has gained within ...
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