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    Definition of growth stock

    Dictionary of Business Terms: growth stock
    growth stock

    stock of a corporation that has exhibited faster than average gains in earnings over the last few years and is expected to continue to show high levels of profit growth. Growth stocks are riskier investments than average stocks, however, since they usually sport higher price-earnings ratios and make little or no dividend payments to shareholders.

    Dictionary of Finance and Investment Terms: growth stock
    growth stock

    stock of a corporation that has exhibited fasterthan- average gains in earnings over the last few years and is expected to continue to show high levels of profit growth. Over the long run, growth stocks tend to outperform slower-growing or stagnant stocks. Growth stocks are riskier investments than average stocks, however, since they usually sport higher price/earnings ratios and make little or no dividend payments to shareholders.

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