growth stock

Definition

Stock of a company which is growing earnings and/or revenue faster than its industry or the overall market. Such companies usually pay little or no dividends, preferring to use the income instead to finance further expansion.

Use growth stock in a sentence

The growth stock was especially attractive for the financial analyst who was analyzing the investment options available at that time.

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My hedge fund manager is a big believer in finding growth stocks, because these are companies that are one the way up and are spreading across the map.

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When making long-term financial investments by purchasing stock, it's important that one purchases a growth stock that will increase in value over time instead of remaining stable and receiving annual dividend payouts.

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