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Growth phase |
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Growth phaseA phase of development during which a company experiences rapid earnings growth as it produces new products and expands market share.Growth phase Similar MatchesCapital growthCapital growthWhere the original amount you invest increases over a period of time. Generally this is achieved by interest or dividends being added back to an account for reinvestment. Guaranteed growth bondGuaranteed growth bondA bond in which a single premium secures a guaranteed amount at its maturity date. Biased growthBiased growthSee bias. Growth stocksGrowth stocksStocks whose earnings have grown at an above average rate over a number of years and which are expected to continue to grow at a high rate for some time to come.Growth stocks usually trade on higher P/E ratios than non growth stocks, but their share prices also tend to be more volatile, which means they are inherently more risky than other stocks. If their growth falters, the market may punish them by marking down the share price severely.Because their primary attraction is capital growth, growth stock companies are often not expected to pay dividends. The reasoning is that the shareholders are better served by the money being invested back into the company. This is fine if the company delivers on its growth promises, as increases in earnings will, if the P/E stays the same, result in higher share prices. But if the company fails to deliver on its promises, investors will not only miss out on the capital appreciation they expect, but won't even have dividend income to compensate. Immiserizing growthImmiserizing growthEconomic growth that makes the country worse off. Bhagwati (1958) coined the term for growth that expands exports and worsens the terms of trade sufficiently that its real income falls. Johnson (1955) had shown that a market distorted by a tariff could lose from growth and had also, independently, worked out conditions for Bhagwati's result. Further SuggestionsPresent value of growth opportunitiesprice earnings growth factor Growth accounting Internal growth rate growth investing Growth manager Full Employment and Balance Growth Act of 1978(Humphrey Hawkins Act) Engine of growth Aggressive growth mutual fund Constant growth model Compound Annual Growth Rate Growth fund dividend growth Aggressive Growth Hedge Fund Compound growth rate Growth and income fund Stability and Growth Pact Growth rates Growth Economic growth Normal growth firms compound annual growth rate capital growth Net present value of growth opportunities Growth opportunity |
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