Meaning of growth stock | Babel Free

Definitions

A corporate equity investment instrument which usually does not pay substantial dividends but which increases in value as the company grows, and which typically appeals to investors who have a long-term perspective.

Examples

“Those lucky investors who years ago put $20,000 into International Business Machines, or a similar growth stock, and have seen it soar to $500,000 today, do have some problems.”

“Two years later, when Brown took Stryker public, bankers told him it would need at least 20% annual earnings gains to be considered a growth stock.”

“What's the perfect small-cap growth stock? One with good growth prospects, fat margins, limited competition, and outstanding management.”

CEFR level