Growth stocks are shares in companies expected to grow at an above-average rate compared to others in the market. These companies typically reinvest their profits into business expansion, research, and innovation instead of paying dividends. As a result, growth stocks often have higher valuations and price-to-earnings ratios. They are commonly found in dynamic sectors like Technology, Healthcare, and Green Energy & Renewables. While they offer potential for substantial capital appreciation, growth stocks are also more volatile and carry higher risk due to their dependence on continued high growth and external market factors.