growth investing

growth investing definition - finance
A type of investing style that focuses on purchasing stocks with strong earnings and revenue growth expectations. Because the stocks that are purchased are issued by companies that are attempting to grow their business, dividends are rarely paid. Instead, the companies retain the money to boost their growth. Sometimes growth companies also may have a lot of risk associated with them, especially in declining markets. Mutual funds call themselves a growth fund if they purchase the stock of growth companies.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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