Definition

Shares of a company expected to grow at an above-average rate compared to others, often reinvesting profits to fuel expansion.

What to consider

  • Focus on stocks with strong potential for rapid expansion.
  • Be prepared for higher volatility alongside growth.
  • Review earnings reports and market trends regularly.

Real world scenarios

  • Hoping to maximize returns, Isabella invested in growth stocks from innovative companies, expecting their earnings to increase significantly over time.

Related terms

Investments & Retirement