GROWTHSTOCK

Growth stock

In finance, a growth stock is a stockof a company that generates substantial and sustainable positive cash flow and whose revenues and earnings are expected to increase at a faster rate than the average company within the same industry. A growth company typically has some sort of competitive advantage that allows it to fend off competitors. Growth stocks usually pay smaller dividends, as the company typically reinvests retained earnings in capital projects.

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growth stock

Noun

  1. 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.


The above text is a snippet from Wiktionary: growth stock
and as such is available under the Creative Commons Attribution/Share-Alike License.

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