Growth Stock


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".

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.


Investment dictionary. . 2012.

Look at other dictionaries:

  • growth stock — see stock Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. growth stock n. A secu …   Law dictionary

  • Growth stock — In finance, Growth Stocks are stocks that appreciate in value and yield a high return on equity (ROE). Analysts compute ROE by taking the company s net income and dividing it by the company s equity. To be classified as a growth stock, analysts… …   Wikipedia

  • Growth stock — Common stock of a company that has an opportunity to invest money and earn more than the opportunity cost of capital. The New York Times Financial Glossary * * * growth stock growth stock ➔ stock1 * * * growth stock UK US noun [U] FINANCE, STOCK… …   Financial and business terms

  • growth stock — common stock of a company that has an opportunity to invest money and earn more than the opportunity cost of capital. Bloomberg Financial Dictionary * * * growth stock growth stock ➔ stock1 * * * growth stock UK US noun [U] FINANCE, STOCK MARKET …   Financial and business terms

  • growth stock — noun stock of a corporation that has had faster than average gains in earnings and is expected to continue to • Hypernyms: ↑stock * * * noun : investment shares of a company having a steady growth in business and profits over a long period of… …   Useful english dictionary

  • growth stock —   Le growth stock sono per definizione le azioni che rappresentano azioni di società ad elevato potenziale di crescita. Questi titoli sono caratterizzati da un rapporto prezzo / utile ( P / E ) superiore alla media …   Glossario di economia e finanza

  • growth stock — noun a company stock that tends to increase in capital value rather than yield high income …   English new terms dictionary

  • growth stock fund — UK US noun [C] STOCK MARKET, FINANCE ► GROWTH FUND(Cf. ↑growth fund) …   Financial and business terms

  • Supernormal Growth Stock — A stock that experiences a continued period of growth exceeding that of the economy. Generally, the duration is over a year in length. Supernormal stocks will revert back to normal growth after a few years. Exceptional growth is usually a part of …   Investment dictionary

  • Stock selection criteria — is a strategy in which an analyst or investor uses a systematic form of analysis to determine if a particular stock constitutes a good investment which should be added to their portfolio. The objective of stock selection criteria is maximizing… …   Wikipedia