Growth Stock

What does it Mean? 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... 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.


Terms Related Links

Growth At A Reasonable Price - GARP
Growth Company
Growth Fund
Growth Industry
Growth Rates
Investment Style
Long-Term Growth
Mid-Value Stock
Price-Earnings Ratio - P/E Ratio
Value Stock

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