growth stock

Noun

growth stock (plural growth stocks)

1. A corporate equity investment instrument which usually does not pay substantial dividends but which increases in value as the company grows, reinvesting its profits, and which typically appeals to investors who have a long-term perspective.
   • Those lucky investors who years ago put $20,000 into International Business Machines, or a similar growth stock, and have seen it soar to $500,000 today, do have some problems.1960 December 5, “Investment: Capital-Gains Stall”, in Time
   • Two years later, when Brown took Stryker public, bankers told him it would need at least 20% annual earnings gains to be considered a growth stock.2004 December 6, Kathleen Kerwin, “Knees And Hips — And Now What?”, in Businessweek, retrieved 16 Aug 2011