growth stock

Definitions

1. 1

   A corporate equity investment instrument which usually does not pay substantial dividends…

   A corporate equity investment instrument which usually does not pay substantial dividends but which increases in value as the company grows, and which typically appeals to investors who have a long-term perspective.

   • Those lucky investors who years ago put $20,000 into International Business Machines, or a similar growth stock, and have seen it soar to $500,000 today, do have some problems.
   • Two years later, when Brown took Stryker public, bankers told him it would need at least 20% annual earnings gains to be considered a growth stock.
   • What's the perfect small-cap growth stock? One with good growth prospects, fat margins, limited competition, and outstanding management.

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