In contrast, Growth Stocks are those that have higher potential for growth and are favored by investors looking for higher returns.
Value Stocks refer to stocks that trade at a lower price compared to their intrinsic value, making them a desirable choice for value investors. On the other hand, Growth Stocks are stocks that are expected to experience significant growth and are favored by investors seeking higher returns. As a knowledgeable finance professor, it's important to understand the characteristics and differences between these two types of stocks to make informed investment decisions. While value stocks may provide a sense of security and stability, growth stocks offer the potential for higher profits. Ultimately, it's crucial to strike a balance between the two when building a diversified portfolio.
