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Glossary

Growth

Refers to an investment strategy that selects shares with a record of past growth and the potential for future increases in capital value. Usually, that means companies with high growth in earnings or expected earnings, and hence the potential for big increases in the stock price. Shares in growth companies are usually expensive, relative to the internal or fundamental value of the company. If the company fails to deliver growth, the price can fall dramatically. Growth investing is usually considered more risky than value investing.

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