Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Your Portfolio and other Investing topics.

What is a growth stock?

Growth vs. Value

Diversify your portfolio by investing in both "growth" stocks and "value" stocks. There are no cut and dry boundaries for stocks to be included in either category, but many mutual funds use the categorizations to describe their investing philosophy.

A growth stock is a stock that has the potential for large growth. These stocks are smaller and riskier and don't pay dividends.

A value stock is a stock from a larger company that hasn't been noticed by the market yet. It will usually pay a dividend and will have a low P/E ratio.

Comments

Nobody has commented on this tip yet. Be the first.

Ask a Question

Not finding the advice and tips you need on this Investing Tip Site? Request a Tip Now!

Guru Spotlight

Mary White

Ever wonder how you could make your life better and more fun? So have tens of millions of fans who have turned to LifeTips for answers over the past decade. We keep the tips, advice, books, podcasts and writing services flowing, so you can keep your life and business growing in the right direction. Upward!