Growth Stock

A growth Stock is a Share in a company that is expected to grow at an above-average rate compared to other companies in the market. These Stocks typically rEINvest their earnings to expand their business and are characterized by high price-to-earnings (P/E) ratios, as investors are willing to pay a premium for anticipated future growth. Growth Stocks often do not pay dividends, as profits are used for rEINvestment.

Examples of growth Stocks include:

• Amazon (AMZN): Known for its rapid expansion in e-commerce and Cloud Computing.
• Apple (AAPL): Continues to innovate with new products and services, driving significant Revenue growth.

In cases of market downturns, growth Stocks may experience higher volatility compared to value Stocks, as their prices are largely driven by future expectations rather than current earnings.