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Some Canadian investors look for growth stocks to add to their portfolios. Visit the MoneySense Glossary to find out when a company stock is considered a growth stock.
Stocks of companies with rapidly growing earnings are often referred to as growth stocks. Investors buy these stocks believing the businesses’ above-average growth will continue in the future, causing the value of their investments to increase.
Example: “Growth stocks tend to be concentrated in higher-growth industries, and at this point in time, that includes sectors like information technology, health care and alternative energy.”
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