How Do You Spell GROWTH SHARE?
Pronunciation: [ɡɹˈə͡ʊθ ʃˈe͡ə] (IPA) 
Pronunciation: [ɡɹˈə͡ʊθ ʃˈe͡ə] (IPA)
A growth share refers to a concept in business and investment that measures the proportion of a company's earnings or profits relative to its overall market performance. It is calculated by dividing a company's total earnings by the total earnings of all companies within a particular market or industry. This metric allows businesses to assess their growth potential in relation to their competitors, providing insight into their market share and performance.
Moreover, growth share is often used in the context of portfolio diversification and investment strategies. In investment portfolios, growth shares are stocks or assets that are expected to generate substantial returns and capital appreciation over time. Investors allocate funds to growth shares based on their predicted growth trajectory, taking risks in anticipation of high returns. In contrast, value shares are typically considered to be more stable and have a lower growth potential.
The concept of growth share aligns with the idea that growth companies tend to outperform and outpace other competitors in the long run. This notion is commonly associated with the growth-share matrix, a framework developed by the Boston Consulting Group. The growth-share matrix categorizes businesses into four quadrants - stars, cash cows, question marks, and dogs - based on their market growth rate and relative market share. This matrix helps companies identify and prioritize their investments and resources for optimal growth and market positioning.
In summary, a growth share is a metric that determines a company's market performance and potential relative to its competitors. It is a crucial factor for both businesses and investors when making strategic decisions and allocating resources.
The term "growth share" does not have a clear etymology since it is a combination of two independently existing words.
"Growth" comes from the Old English word "growan" meaning "to grow, increase, or expand". It has been used in the English language since at least the 14th century.
"Share" comes from the Old English word "scearu" meaning "a division, portion, or part". It has been used in the English language since at least the 9th century.
When these two words are combined to form "growth share", it expresses the concept of a portion or division of growth, typically used in business or financial contexts. However, the specific combination and usage of the term does not have a unique or identifiable etymology beyond the individual roots and their meanings.
