Also known as a "glamor stock".
Note that a growth company's stock is not always classified as growth stock. In fact, a growth company's stock is often overvalued.
| Growth Stock | |
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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". |
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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. |
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