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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