Shares/Stock Growth stocks and its adavantages.

[Wiserr]

What are Growth Stocks?

Growth stocks are in essence young companies. Young in terms of age.

Characteristics of growth stocks
High growth rate (especialy revenue)
No history of paying dividends.
Play in new or merging areas
High profit margins

Popular growth stocks

A sector in which you will find many growth stocks is in the tech space. You can take firms such as Facebook, Amazon, Peloton, Zoom and even newcomers such as Snowflake andJFrog as growth stakes.

Another area where you will several growth stocks is the tele health and biotech space where companies such as Teledoc, Livongo and co operate.

Pros of growth stocks

The rapid growth is the biggest advantage. Getting in at the right moment means one can key into massive capital appreciation. Investors who have held stocks such as Facebook and Netflix since their IPOS may have made massive returns. Well over a 1000%.
But Downsides You may see some what bloated valuations as these firms have largely been bid up. Many of them are also loss making and may not be paying dividends. It may take several years before these firms make a profit
one of the major advantage of growth stock is that they tend to have hight growth rate.
what do you understand by growth stock.

 

[Deleted member 28127]

It is not always preferable to invest on popular companies like Facebook or Netflix because sometimes on an old based companies you will find a lot of participants on a stock means a profit is divided on several investors while for new companies you will find much lesser investors on stocks this is why many stock investors are investing on dummy companies than popular one because they may need a bigger budget for same profit due to quantity of similar investors on the same time on this equity.

 

[Wiserr]

It is not always preferable to invest on popular companies like Facebook or Netflix because sometimes on an old based companies you will find a lot of participants on a stock means a profit is divided on several investors while for new companies you will find much lesser investors on stocks this is why many stock investors are investing on dummy companies than popular one because they may need a bigger budget for same profit due to quantity of similar investors on the same time on this equity.

Yes its expected that one before investing on any stock,the first thing he has to do is to research so that he can benefit in all the advantages or in order to avoid loss.