These stocks tend to be new and buzzy, and are growing faster than the average company. Growth companies tend not to pay dividends, as they’re re-investing their earnings back into their growing businesses. While you don’t get your money back right away, the long-term money you stand to make is typically pretty good. Growth stocks are especially common in certain industries (like technology and biotech). An example would be Twitter, which tends to bounce around a lot, versus a value stock like Johnson&Johnson, which is more reliable. (See also: Value Stocks)« Back to Glossary Index
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