The value of investments can fall as well as rise, and you may get back less than you invested. Past performance is no guarantee of future results.

Growth stock definition

A growth stock is a listed company whose revenues and earnings are expected to grow at a fast rate relative to the rest of the market

Growth stock definition

A growth stock is a listed company 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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