Companies whose potential for growth in sales and earnings are excellent, are growing faster than other compa…

Question

Companies whose potential for growth in sales and earnings are excellent, are growing faster than other companies in the market or other stocks in the same industry are called :

Accepted Answer

## Model Answer **(C) Growth Stock** — Companies with excellent potential for growth in sales and earnings, growing faster than other companies or stocks in the same industry, are called **Growth Stocks**. ## Explanation - The question describes a specific category of stocks defined by high growth potential in sales and earnings relative to the market or industry peers — this is the textbook definition of a **Growth Stock**. - **Value Stock** refers to undervalued stocks; **Common Stock** is another term for equity shares; **Debt Instrument** involves borrowing (e.g., bonds/debentures) — all are clearly different concepts. - In MCQs, match the key phrase *"growing faster than other companies/industry"* directly to the term **Growth Stock**.

Introduction to Financial Markets (405) — CBSE Class 10 board question