HomeDefinitionsCompareDebt Growth stockThe financial definition for Growth stock:Common stock of a company that has an opportunity to invest money and earn more than the opportunity cost of capital. Similar MatchesAggressive Growth Hedge FundAggressive Growth Hedge FundIn the context of hedge funds, a style of management that focuses primarily on equities that are expected to have strong earnings growth. Aggressive growth mutual fundAggressive growth mutual fundA mutual fund designed for maximum capital appreciation that places its money in companies with high growth rates. Compound Annual Growth RateCompound Annual Growth RateBest defined by example. If you invest $100 today and make 5% in the first year and reinvest ($105) and make 8% in the second year, the compound annual growth rate is 6.489%. The calculation is $100x1.05x1.08=$113.4 which is what you end up with at the end of year two. The average return is [square root(113.4/100) -1]= 0.06489 or 6.489%. Note 1. If we had three compounding periods we would take the cubic root (power of 1/3). Note 2. If we had invested at exactly 6.489 in both periods, we get $100x1.06489x1.06489=$113.4. Note 3. The example is directed to a return - but CAGR could be applied to earnings growth, GDP growth, etc. Further SuggestionsCompound growth rateConstant growth model Economic growth rate Full Employment and Balance Growth Act of 1978(Humphrey Hawkins Act) Growth and income fund Growth fund Growth manager Click to compare definitions of Growth stock Click to view definitions beginning gr |