LeoGlossary: Growth Stock

A stock of a company that is seeing high growth in its revenues and profits. This company pays little to no dividend. Investors flock to it because of the speculative nature. The price moves in the market provide ample opportunity to get an outsized rate of return.

The companies behind this type of stock tend to be well established in their field. Also, the profits, instead of being forwarded to shareholders, are reinvested into the company.

Here we see the potential for even more growth.

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