Growth Stock
InvestingGlossary term
Definition
Stock in a company expected to grow earnings faster than the market average. Typically reinvests profits rather than paying dividends. Higher potential returns but more volatile.
Related terms
- Value StockStock trading below its intrinsic value based on fundamentals. Often established companies with low P/E ratios and steady dividends. Contrasts with growth stocks.
- StockA share of ownership in a company. When you buy stock, you become a partial owner with potential to earn money through price appreciation and dividends.
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