Growth Stock
A stock that appears attractive because of potential earnings growth by its company.
A stock may be considered a "buy" as a growth stock if it's P.E.G. ratio is relatively low among companies in its industry.
Compare value stock.
Growth stock
Common stock of a company that has an opportunity to invest money and earn more than the
opportunity cost of capital.
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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.
growth stock
A stock that is expected to rise in price over time, outperforming the overall market, because of future earnings gains or due to other factors, such as a rising trend in the market value of its products.
Growth Stocks
Stocks in companies that have exhibited faster-than-average growth in earnings over the past few years, with the potential of further profit growth.
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Growth Stock - Generic term for any stock that appeals to investors seeking appreciation of capital rather than for current income or asset preservation.
GROWTH STOCK - Stocks of younger or smaller companies, have relatively high risk and represent relative...
GROWTH STRATEGY - An investment strategy that seeks capital appreciation over time, typically in the fo...
Home Page Finance Investing How to Pick the Best Hot Stocks in 2007 >> Good Technology Stocks to Buy .. Top Growth Stock ...
Growth Stock - The stock of a company whose business is considered recession-resistant and also has exhibited an above-average growth rate.
Growth Stock. Shares of companies whose earnings are expected to increase at an above-average rate. Growth stocks are often typified by their low yields and relatively high price/earnings rations.
Growth stock. Growth stock means shares of a company known for a history of rapid earnings growth. Most growth stocks don't pay dividends because management reinvests earnings to feed the growth.
Growth stocks
Stocks, whose earnings have grown at an above-average rate over a number of years, and which are expected to continue to grow at a high rate for some time to come.
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Growth Stock
Stock of a company with earnings' growth at a fairly rapid rate that is anticipated to continue to grow at high levels.
Growth Stock: The common equity of a company that consistently grows significantly faster than the economy.
Growth Stock
Stock of a company in a new industry or of a company participating in an emerging industry.
GTC ...
Growth Stocks
Stocks that usually pay little or no dividend, instead, invests their earnings back into the company in hopes of fast growth.
GROWTH STOCK " Stock of a company with a record of growth in earnings at a relatively rapid rate.
GUARANTEED " Refers to securities that have a guarantee, from a source other than the issuer; as to payment of principal, interest, or dividend.
Growth stocks - Shares of companies with earnings that are expected to increase at a greater rate than the overall market.
GST - Federal Goods & Services Tax.
Growth Stock
The common stock of a company that is expected to have above-average growth in revenues and profits.
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Growth Stocks Stocks of companies that have an opportunity to invest in projects that earn more that the required rate of return.
- H -
Hurdle Rate The minimum required return on a project.
Growth Stock
Common stock of a company with excellent prospects for above-average growth; a company which over a period of time seems destined for above-average expansion.
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Growth Stocks: Stock of companies expected to increase in value.
Guaranteed Investment Contract (GIC): A fixed-income investment offered in many tax-deferred employer retirement plans that guarantees a specific rate of return for a specific ...
Growth stocks - Used to describe shares of young companies with little or no earnings history. They are valued on the basis of anticipated future earnings and thus have high price earnings ratio.
Growth stocks are inherently more risky, but offer far greater potential for wealth accumulation through capital gains in the stock price. Of course, until you sell your holding, these gains will not be realised.
Growth stocks aren't always new companies, though. They can also be companies that have been around for some time but are poised for expansion, which could be due to any number of things, such as technological advances, a shift in strategy, ...
Growth StockExpand/Collapse
Usually a non-dividend paying common stock of a company with expansion potential. The corporate funds that would normally be paid to shareholders as dividends are put back into the company to pay for expansion.
- Growth Stocks are issued by young, entrepreneurial companies that are experiencing a faster growth rate than their general industries.
The growth stocks generally command a higher P/E ratio because their future earnings are expected to be greater. In Stocks for the Long Run, Jeremy Siegel examines the P/E ratios of growth and technology stocks.
Both growth stocks and value stocks.
Suitable for:
Investors who want the potential to build wealth over time while seeking investments that perform well when either growth or value stocks are in favor.
High-growth stock in a company that retains earnings for further growth and therefore pays no dividends, but that an investor feels has significant future potential.
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3. Buy Growth Stocks. Buy stocks that have achieved very high sales (and ideally income) growth rates. Buy them even when their valuations seem very high, since the theory is that the sales and profit growth will eventually justify the price paid.
5. For some growth stocks, growth never does come. Eventually the share price falls.
6. Some value stocks are cheap for a reason - they are bad stocks and they deserve to be cheap.
See related: Growth stock.
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Performance fund A growth-oriented mutual fund investing in growth stock and performance stock with low dividends and high risk. Performance index A risk-adjusted measure of how well a portfolio has performed.
For example, money market funds and other short-term investments offer more stability than funds that invest in growth stocks. Stag Speculator who buys and sells stocks to hold for short intervals to make quick profits.
Emerging growth stock The common stock of a relatively young firm operating in an industry with very good growth prospects. This kind of stock offers unusually high returns, it is also very risky because the expected growth may not occur.
Go-go fund A type of mutual fund in highly aggressive growth stocks. The fund has high levels of risk and potential return. Go to Used in the context of general equities. Sell insurance ("we've got 50 IBM to go".).
Opposite of to growth stock. Value Maximization Increases in owners' wealth achieved by maximizing of the value of a firm's common stock.
Value investing is not always best: there are periods when growth stocks will out-perform.
If everyone is talking about how good a particular investment, or asset class (shares, tech stocks, property, whatever), is, then it is probably over-valued.
Opposite to growth stock. Vanilla issue A security issue that has no unusual features. Variable Refers to the series used in a model.
EASDAQ was set up in 1996 as a pan-European stock market for technology and growth stocks. It now has about 60 companies listed with an a...(Read more)
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For example, if you are looking for income, it would make no sense to buy a small-cap fund, which would typically invest in riskier, growth stocks.
Some investors favor growth stocks while others favor value stocks. Since 1992, results of those investment styles, which tend to produce different returns over time, have been tracked separately by the Standard & ...
Each member of the club contributes a certain dollar amount periodically, with the additional money usually invested in growth stocks using a dollar cost averaging approach. Dividends and capital gains are reinvested in most cases.
Sell Growth Stocks The IBD Way
This method of valuing a company can make a company look like a bargain when it is not. Relative Valuation: Don't Get Trapped
Key financials often fail to provide insight into large cap companies.
Historically, value stocks have enjoyed higher average returns than growth stocks (stocks with high price/book or P/E ratios) in a variety of countries.
0% dividend yield isn't necessarily bad because it means the company in question is using most of their profits too expand. In other words, it's a growth stock with business, profits and earnings growing.
See also: Blue Chip, Broker, Focused Fund, Growth Stock, Portfolio, Portfolio Manager, Style Drift
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Aggressive Growth Hedge Fund
Alternative investments
American-style option
Bermuda Option
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A mutual fund that attempts to increase asset value primarily through investments in growth stocks. The heavy investment in growth stocks increases the risk associated with these types of funds.
Also called "aggressive growth fund".
Performance stock
High-growth stock in a company that retains earnings for further growth and therefore pays no dividends, but that an investor feels has significant future potential.
Now is not the time to be looking at growth stocks. For your investments, consider bonds or other safe investments.
Thus an investment philosophy of a more aggressive investor may tolerate substantial risk by focusing on high growth stocks, while a conservative investor might instead be interested in stability and long-term rewards.
An investment strategy that pursues capital appreciation over the long term by investing in growth stocks.
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Another simple strategy is to receive investment income in a nontaxable form, by investing in tax-free municipal bonds. You might also decide to invest more heavily in non-dividend paying growth stocks, to avoid receiving currently taxable dividends.
An investor who marches to a different drummer is sometimes described as a contrarian. In other words, if most investors are buying large-cap growth stocks, a contrarian is concentrating on building a portfolio of small-cap value stocks.
A manager who seeks to buy stocks that are at a discount to their fair value and sell them at or in excess of that value. Often a value stock is one with a low price to book value ratio. Opposite to growth stock.
Vanilla issue ...
Fund - A slang name for a mutual fund that has an investment strategy that focuses on high-risk securities in an attempt to capture above average returns. A go-go fund's aggressive approach usually involves holding large positions in growth stocks.
considered to be undervalued based upon such ratios as price-to-book or price-to-earnings (P/E). These stocks generally have lower price-to-book and price-earnings ratios, higher dividend yields and lower forecasted growth rates than growth stocks.
A stock with a P/E ratio of 24 that's expected to see earnings increase at a 16% annual clip would have a PEG ratio of 1.5. Some investors who favor growth stocks but don't wish to overpay for them seek a PEG ratio no higher than 1.
 See also: Banks, Expense, Values, Growth stocks, Opportunity cost
  
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