Growth stocks are companies that increase their revenue and earnings faster than the average business in their industry or the market as a whole.
Often a growth company has developed an innovative product or service that is gaining share in
Entering new markets
Even creating entirely new industries.
Businesses that can grow faster than average for long periods tend to be rewarded by the market, delivering handsome returns to shareholders in the process.
And the faster they grow, the bigger the returns can be.
Growth stocks typically don't pay dividends so Investment in growth stocks can be risky.