growth shares: meaning, definition, pronunciation and examples

Yes, in modern financial English, 'shares' and 'stocks' are often used interchangeably in this context, especially in compound terms like this. 'Growth stocks' is slightly more common in American English.

Typically, yes. Because their price is based on future expectations, they can be more volatile than established, dividend-paying companies. If the expected growth doesn't materialise, the share price can fall sharply.

It's a spectrum. A pure growth company reinvests all profits. A mature growth company might pay a small dividend. The key is that capital appreciation is the primary reason for investment, not dividend yield.

The main opposite is an 'income share' or 'value share'. Income shares are bought for their reliable dividend payments. Value shares are considered undervalued relative to their current assets and earnings, not necessarily for high future growth.

A type of company stock (shares) that investors buy primarily for the expectation that their capital value will increase over time, rather than for receiving regular dividend income.

Growth shares is usually formal, technical, financial. in register.

Growth shares: in British English it is pronounced /ɡrəʊθ ʃeəz/, and in American English it is pronounced /ɡroʊθ ʃɛrz/. Tap the audio buttons above to hear it.