Introduction to Growth Stocks

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Learn what makes growth stocks so vital to so many investors’ financial dreams. They have many benefits, but also some downsides.

What you will learn

  • What Are Growth Stocks?
  • How to Identify Growth Stocks
  • Which Companies Are Considered for Growth Stocks?
  • Advantages and Disadvantages of Growth Stocks
  • Who Buys Growth Stocks?

What do you know?

Introduction to Growth Stocks

Growth stocks represent the field of dreams for many investors who turn to them in hopes of realizing large investment gains. Corporations that want to raise money by selling shares of the business to the public issue stock. Once this stock is traded publicly, its value on the market depends largely upon how the public perceives its investment potential. Stocks that the public believes will appreciate in value are sought by investors for their growth potential.

Of course there are risks, because a potential growth company may not "grow." Investors must understand both the company in which they plan to invest as well as the investment marketplace. Pick and choose growth stocks based upon careful analysis, your risk tolerance, and your investment objectives.