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Investments glossary

Exponential Growth


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Quotes of the day:

Truth may be stretched, but cannot be broken, and always gets above falsehood, as does oil above water.

— Miguel Cerbantes

Exponential growth is a pattern of data that shows greater increases with passing time, creating the curve of an exponential function. For example, if a population of mice doubles every year starting with two in the first year, the population would be four in the second year, 16 in the third year, 256 in the fourth year, and so on. The population is growing to the power of 2 each year in this case (i.e., exponentially).

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