# Growth Stock

*Saving & Investing — Finicade finance glossary*

A growth stock is priced for rapid future expansion, typically trading at a high multiple of current earnings and paying little or no dividend. Because most of its value sits in distant cash flows, it behaves like a long-duration asset: rising interest rates hit it harder than they hit a mature dividend payer. That single mechanism explains most of the violent rotations between growth and value during rate cycles.

**Also known as:** growth shares, high growth stock

**Related terms:** [Value Stock](https://finicade.com/glossary/value-stock), [Growth Investing](https://finicade.com/glossary/growth-investing), [P/E Ratio](https://finicade.com/glossary/p-e-ratio), [Equity Valuation](https://finicade.com/glossary/equity-valuation), [Duration](https://finicade.com/glossary/duration)

Source: https://finicade.com/glossary/growth-stock