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What are Growth Stocks?

A growth stock is a stock in a company that still has a lot of potential to grow in the future. Investing in growth stocks can be be very profitable, in fact much more so than investing in blue chip stocks.

Growth stocks often have a relatively high P/E (Price to Earnings) ratio when compared to lower risk stocks. These types of stocks also typically do not pay a dividend to its shareholders, as keeping the money in the company is deemed more profitable.

What are Cyclical Stocks?
What are Small Cap Stocks?
What are Large Cap Stocks?
What are Defensive Stocks?