WHAT ARE GROWTH STOCKS?

Shares - - TALKING POINT -

A ‘growth’ stock is usu­ally de­fined as a com­pany whose earn­ings are ex­pected to grow at an above-av­er­age rate ei­ther for its in­dus­try or the over­all mar­ket. A ‘growth’ in­vestor will buy such a stock even if it ap­pears to be ex­pen­sive based on met­rics such as the PE ra­tio.

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