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What is a "growth" stock?

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What is a "growth" stock?

A growth stock is a stock that the marketplace feels has great growth potential. Using the book-to-market example, it's a low relative book-to-market price; its book value, what the accountant says it's worth, let's say it's a billion dollars, and the market might price it at ten billion or twenty billion. What that means is the market really feels that the value of the company is going to grow into that value. Growth companies tend to be the companies with the least amount of risk in the marketplace.

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What is a "growth" stock?

What is a "growth" stock?

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What is a "growth" stock?

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