Learn / Glossary / Growth stock

Glossary

What is Growth stock?

A growth stock is a company expected to grow its sales much faster than average.

The simple explanation

These companies usually put profits back into the business instead of paying dividends. Their prices can be high compared with earnings, and they can swing a lot.

An example

A fast growing software company that doubles sales every few years is a growth stock.

Why it matters

Growth stocks can reward patience, but they often fall hard when growth slows.

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Related terms

Educational information, not financial advice.