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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Growth Company

Definition:

A growth company... grows. There are shrinkage companies, think: Buggy whip makers after cars were invented (and this doesn't include the Castro District of San Francisco or The Combat Zone in Boston). A core element of growth companies is that they take money that they would normally give back to shareholders in the form of dividends and instead spend it on inventing and developing new products, line extensions, acquisitions and other ways of expanding their footprint or pricing power.