Definition Of Growth Stock

Share in a company performing better or expected to perform better than its industry or the market as a whole.

Definition of growth stock. Growth stock synonyms growth stock pronunciation growth stock translation english dictionary definition of growth stock. Growth stock stock of a corporation that has had faster than average gains in earnings and is expected to continue to stock the capital raised. How does a growth stock work. Their values don t jump around as much as shares of smaller riskier companies generally speaking and so conservative.

A growth company typically has some sort of competitive advantage a new product a breakthrough patent overseas expansion that allows it to fend off. A growth stock can increase its annual earnings faster than average it was not sold to fund managers as a capital growth stock after understanding the difference between a growth stock and a value stock and what a stock s price to earnings ratio is he began to consider the types of investments he wanted to make. Shares generating a return on equity of greater than 15 are generally classified as growth stocks but not all growth stocks are classified as such. The nature of a company s business determines many of the characteristics of its stock especially for growth stocks for example blue chip stocks are issued by high quality large companies and generally have steady dividend payments.

Growth stocks often look expensive trading at a high p e ratio but such valuations. Growth stock stock of a corporation that has had faster than average gains in earnings and is expected to continue to stock the capital raised. Growth stocks are those companies expected to grow sales and earnings at a faster rate than the market average. Growth stocks synonyms growth stocks pronunciation growth stocks translation english dictionary definition of growth stocks.

Such stocks usually pay little to nothing dividends as the companies reinvest most of their earnings. Meaning of growth stock.