Growth stocks versus value stocks. growth stocks are stocks that have high PE ratios. High p s ratios high PB ratios. Basically growth stocks means that the earnings are keep growing year after year after year. As long as that growth continues stock, theoretically should be worth more. An example of a growth stock is Amazon, Google, Facebook, Netflix, those are growth stocks because they have to keep growing themselves in the market keep expanding in the market, and they usually take their dividends reinvesting into their own companies rather than give the money back to you.

So last few years and the s&p 500 index if you look at the index, it's been dominated principally by growth stocks. growth stocks have led the charge to increase value shareholders. Now value stocks on the other hand at the low p p s and PB ratios. Those are stocks that are going to pay heavy dividends. Not grow in price very much not moved much on the charts and yet return substantial income back to you. Those are known as value stocks.

They're high dividend, low growth maturing companies.