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growth at a reasonable price (garp)

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Financial Dictionary

growth at a reasonable price (GARP)

The strategy of investing in stocks with growth potential but only when the stocks are reasonably priced relative to the overall market. GARP investors generally search for a favorable combination of earnings growth (higher is better) and price-earnings ratio (lower is better).

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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