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A Growth stock is a share of stock issued by a company that, in comparison to other businesses in the economy, has the potential to generate earnings that are above average.
Growth investing is a stock-buying technique that tries to make money from companies that grow faster than their industry or the market as a whole. A financial ratio called dividend yield illustrates how much a corporation pays out in dividends annually in relation to the price of its stock.
Growth-oriented businesses typically have innovative leadership teams that are focused on substantial market potential. Growth stock investing is not a surefire technique to generate money on the stock market.
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