growth stocks is a company stock that tends to increase in capital value rather than yield high income It is a share in a company whose earnings are expected to grow at an above rate relative to the market.
This stock usually does not pay a dividend, as the company would prefer to reinvest retained earnings in capital projects. investors choose stocks based on the potential for capital gains, not dividend income, so they can be risky. In finance, a growth stock is a stock of a company that substantial and sustainable positive cash flow and whose revenues and earnings are expected to increase at a faster rate than the company within the same industry
If you posses stocks in a successful company or society whose earnings, relative to the market are expected to continue growing, you’ve got yourself some growth stocks. Rather than yielding a super high income, it tend to increase in capital value. There’s a lot of hype surrounding these special stocks, and it’s for good reason. They typically have impressively high price to earnings ratios. In most cases the company would prefer to reinvest retained earnings in capital projects, so it’s not typically common for growth stocks to pay dividends
It can alsn build your personal wealth fast and quickly. but they are a virtual minefield full of overpriced stocks. With that in mind, we asked a handful of motley fool investors for some guidance through this tempting.
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