| Growth Stocks are generally companies whose sales, market share, and earnings are growing faster than the general economy and their industry average. These companies are usually involved in research and are more aggressive than others. Furthermore, they reinvest their earnings back into the business to facilitate this growth. Because investors generally place a higher value for this above-normal growth, the price-earnings ratios of these stocks will be higher than their counterparts and average stocks, and the dividend if any will usually be lower.
See also:
Income Stocks
Value Stocks
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