what is an example of a growth stock 
as a hypothetical example a growth stock would be a biotech startup that has begun work on a promising new cancer treatment say that currently the product is only in the phase i stage of clinical trials and there is uncertainty whether the fda will approve the drug candidate to continue on to phase ii iii trials if the drug passes and is ultimately approved for use it could mean huge profits and capital gains if however the drug either doesn t work as planned or causes severe side effects all of that r d spending may have been in vain and the stock never reaches its potential 