A growth stock is a type of share in a company that is expected to grow at an above-average rate compared to other companies. Investors buy these stocks with the hope that the company's earnings will increase significantly over time, leading to higher stock prices. Growth stocks often reinvest their profits back into the business rather than paying dividends to shareholders. These stocks are typically associated with companies in emerging industries, such as technology or biotechnology, where innovation drives rapid expansion. While they can offer substantial returns, they also come with higher risks, as their prices can be volatile and dependent on future performance rather than current earnings.