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Growth investing definition
Growth investing describes an investing style that focuses on capital gains.
Growth investing definition
Growth investing describes an investing style that focuses on capital gains.
Growth investors in the stock market, for example, will typically invest in growth stocks. These are listed companies whose revenues and earnings are expected to grow at a fast rate relative to the rest of the market. Growth stocks tend towards increased capital value, rather than yielding income in the form of dividends. That’s because such companies reinvest earnings into capital projects that drive growth, and hence share price increases, rather than paying it out to shareholders as dividends.
Many small cap stocks are growth stocks, but large companies (for example, technology stocks) can also be growth stocks.
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