Stocks
Growth StocksOften the most certain stocks present great growth prospects. That is their stock price is low, and their stock price because of the growth and nature of the industry in which the company operates may grow significantly over the years. Internet stocks may be a great example of certain growth stock, although they are classified in other areas as well. Often, because of the growth potential, investors are less concerned about the current market price for the stock. That means that at the time of purchase by certain investment ratios, the stock could be overvalued, in as such would not be a recommended stock by an astute prudent investor. However, if the investor has information or firmly believes that the growth in the industry will occur such that the price of the stock in the future will be cheap, the investor may go ahead and purchase this stock now based on that information. This of course, is a somewhat risky strategy, and research can take some of the risk out of the equation. Again, the younger long-term investor may seek to have a number of growth stocks in their portfolio. This would be a fairly commonly recommended investment vehicle by good quality financial planners in many cases.
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