Growth stock is a type of stock that is expected to grow at a faster rate than the average company. These stocks usually have higher price-to-earnings ratios, a higher risk of loss, and greater price volatility. Growth stocks are often in companies that are cutting-edge and seen as leaders in their industry, such as tech or biotech companies, or companies that have tremendous potential for growth. Investors may seek out growth stocks if they are looking to capitalize on the potential for a large return on investment.
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