Which of the following is true about growth stocks?
A)They are more established companies.
B)They mainly produce a return to investors via capital gains.
C)They pay high dividends.
D)They are the opposite of value stocks.

Question

Quizplus · Accepted Answer

Growth stocks are companies with strong earning potential that are expected to grow faster than the overall market. While they may pay some dividends, their main appeal is the potential for capital gains as their stock prices increase along with their earnings. They are not necessarily more established than other types of stocks, and they are not necessarily the opposite of value stocks (which focus on undervalued companies).

Which of the Following Is True About Growth Stocks