Growth stocks

A growth stock is a firm that is expected to grow significantly faster than the market average. These stocks usually do not pay dividends, as the firms usually want to reinvest all earnings and accelerate growth in the short term, which makes these stocks riskier. Investors want to earn money through capital gains when they eventually sell their shares at higher prices. If the company does not perform well, investors incur a loss on the stock when it’s time to sell. To be classified as a growth stock, companies are usually expected to achieve a 15% or higher return on equity.

Subscription Form

Subscribe for Newsletter

 Be first to know, when we publish new content
logo
The Encyclopedia of Quantitative Trading Strategies

Log in

QuantPedia
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.