• Growth stocks are associated with companies that have favourable growth potential. These companies tend to have both a strong history of growth and strong projected growth. • They also may be on the verge of a major breakthrough or have a favourable position in an up-and-coming industry that could eventually cause their stock prices to rise dramatically. • Of course, growth stocks may carry significant risk, which should be factored into any purchasing decision. • They typically pay minimal dividends because it is usually advantageous for them to reinvest profits.