Growth stocks: the basics
What are growth stocks? The simplest definition is stocks that are anticipated to grow at a rate significantly higher than the rest of the market. But defining "growth" can be tricky. Generally speaking, growth stocks will grow their top line, number of subscribers or users but will often have negative GAAP profits due to the high reinvestment needs necessary to keep the business growing. Investors choose growth stocks in the hope of seeing prices soar, with the danger of picking companies that will never be profitable and whose valuations tend to