Question

If stock is issued in Pirate Recording, analysts predict that the company has potential for strong growth. The prospects for dividend payments to stockholders, at least in the beginning, are not good. Pirate Recording will need to retain its earnings in order to grow rapidly. The firm's stock would most likely be classified as a(n):

Answer 1

Answer:

growth stocks

Explanation:

Growth stocks are generally stocks that have a really large potential of increasing their value a lot in the near future, but they also carry a much larger risk than established stocks. Many high tech stocks were originally classified as growth stocks, e.g. googl was a growth stock that yielded very high returns, while groupon was a growth stock that plummeted.