College Savings Quizzes-What is a growth stock?

Answer to Quiz

What is a growth stock?

Answer: (b)
A growth stock is stock in a company with cash flows or earnings that appreciate (or are expected to appreciate) quickly relative to the overall economy--in other words, it is typically stock in a growth company. Growth stocks rarely pay dividends, as growth companies are usually not mature and reinvest their earnings to expand their business. Growth stocks can offer significantly higher returns than the market overall, but they are volatile.

Next Quiz:

A "Cusip Number" is:

(a) The number set forth in bearer bonds
(b) The number set forth in convertible debentures
(c) The nine character number that uniquely identifies a particular security
(d) The equivalent of a Social Security number for corporations

Word of the Day

Dividend Yield

A dividend yield" is a ratio that shows how much a company pays out in dividends each year...

Dividend Yield

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