Growth stocks are shares of companies that are expected to grow at an above-average rate compared to other companies in the market or industry. Growth companies typically reinvest their earnings into expanding operations, developing new products or services, entering new markets, or acquiring competitors to drive revenue and profit growth. Growth stocks often trade at high price-to-earnings (P/E) ratios and may pay little or no dividends, as investors are willing to pay a premium for their growth potential. Characteristics of growth stocks include strong revenue and earnings growth, innovative business models, competitive advantages, and scalability. Investors seek growth stocks for their potential capital appreciation over the long term, driven by increasing earnings and market share. Growth stocks are popular among growth-oriented investors, portfolio managers, and institutional investors seeking exposure to high-growth sectors such as technology, healthcare, and consumer discretionary.