Equity Investing
Growth Stock
Definition
What is Growth Stock?
A share in a company expected to grow revenue or earnings faster than average.
Example in practice
How This Looks in Practice
Investors may pay a high valuation for a growth stock that is expanding rapidly.
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Related Terms
Equity Investing
Common Stock
A share that usually carries voting rights and a residual claim on a company's profits and assets.
Equity InvestingOrdinary Share
The standard ownership share in a company, generally equivalent to common stock.
Equity InvestingPreferred Stock
A class of share that usually has priority over ordinary shares for dividends and liquidation proceeds.
Equity Capital MarketsInitial Public Offering
The first public sale of a private company's shares, after which the shares may trade on an exchange.