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Growth Company |
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Growth Company A company performing better, or expected to perform better, than its industry or the market as a whole. Companies generating a return on equity of greater than 15% are generally classified as growth companies, but not all growth companies are classified as such. These companies usually pay little to nothing in dividends as the companies reinvest most of their earnings. Some believe that many or most growth companies are overvalued, citing, for example, the large number of growth companies during the dotcom bubble. See also: Industry life cycle. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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