| Stocks whose earnings have grown at an above average rate over a number of years and which are expected to continue to grow at a high rate for some time to come. Growth stocks usually trade on higher P/E ratios than non-growth stocks, but their share prices also tend to be more volatile, which means they are inherently more risky. Because their primary attraction is capital growth, growth stock companies are often not expected to pay dividends. The reasoning is that the shareholders are better served by the money being invested back into the company.
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