Growth stocks are shares in companies that are expected to grow at an above-average rate compared to their industry or the overall market. These companies often reinvest their earnings to expand operations, develop new products, or enter new markets, rather than paying dividends to shareholders. Investors buy growth stocks with the hope that the company's value will increase significantly over time. Typically, growth stocks belong to sectors like technology, healthcare, or consumer services, 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.