Glossary

A growth stock is a share in a company that is expected to grow at an above-average rate compared to other stocks in the market. 🚀

These companies often reinvest their profits into business expansion, research and development, or acquisitions, rather than paying dividends to shareholders.

A classic example of a growth stock is Amazon (AMZN), which has seen significant growth in revenue and market value over the years. 🛍️

Fun fact: Growth stocks often have higher price-to-earnings (P/E) ratios compared to the overall market, as investors are willing to pay a premium for the potential of higher returns in the future.