growth stock

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growth stock (plural growth stocks)

  1. (business, finance) 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.
    • 1960 Dec. 5, "Investment: Capital-Gains Stall," Time:
      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.
    • 2004 Dec. 6, Kathleen Kerwin, "Knees And Hips — And Now What?," Businessweek (retrieved 16 Aug. 2011):
      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.
    • 2011 May 18, Jim Oberweis, "Wrinkles Worth Having," (retrieved 16 Aug. 2011):
      What's the perfect small-cap growth stock? One with good growth prospects, fat margins, limited competition, and outstanding management.