Growth stocks give investors the chance to invest in exciting, fast-moving companies with the potential to produce monumental share price gains, but they often carry high price tags. Value stocks, on the other hand, give investors an opportunity to invest in companies that have fallen out of favor and whose stock price has dropped to bargain levels below their actual value.
Wall Street likes to categorize stocks neatly as either growth or value stocks. The truth is a bit more complicated, as some stocks have elements of both value and growth. Nevertheless, there are important differences between growth and value stocks, and many investors prefer one style of investing over the other.
Growth stocks prioritize going from small,