Growth stocks

There are several ways of classifying stocks, one of the most common being the distinction between growth stocks and value stocks.

Growth stocks are shares of companies that are in an expansion phase and are expected to continue to grow in the coming years. These are usually shares of companies operating in rapidly changing markets with strong competition, such as the technology sector.

It is common for this type of shares to have high volatility, i.e., they can register significant percentage increases and decreases, which makes them high-risk investments, but with the possibility of generating a high profit.

In general, companies that hold growth stocks tend to reinvest their profits instead of paying a dividend.