<PAGE>
Annual Report
Growth
Stock
Fund
------------------
December 31, 1998
------------------
[ART WORK APPEARS HERE]
T. Rowe Price
<PAGE>
REPORT HIGHLIGHTS
- --------------------------------------------------------------------------------
Growth Stock Fund
. Stocks plunged in late summer after reaching an all-time high, then rebounded
near year-end to yet another historical record.
. The fund returned 9.08% and 27.41%, respectively, for the 6- and 12-month
periods ended December 31, 1998, slightly trailing the S&P 500 but well ahead
of the Lipper average.
. Portfolio exposure to technology and larger-cap stocks helped results in the
second half.
. We continued to trim some of the "Nifty Fifty" stocks that led the market and
replaced them with more attractively valued stocks with good potential.
. While earnings and cash flow growth are generally slowing, we believe our
portfolio companies are positioned to outpace the broad market.
<PAGE>
Fellow Shareholders
The last six months of 1998 were characterized by extremes. The S&P 500 hit an
all-time high on July 17, then fell 19% through October 8 before rebounding to
yet another historical record just before year-end. Following the sharp
late-summer correction, a wave of renewed exuberance drove many Internet-related
stocks to levels beyond most reasonable expectations.
- -----------------------
Performance Comparison
- -------------------------------------------------------------------------------
Periods Ended 12/31/98 6 Months 12 Months
- -------------------------------------------------------------------------------
Growth Stock Fund 9.08% 27.41%
...............................................................................
S&P 500 9.22 28.57
...............................................................................
Lipper Growth Funds Average 6.21 22.86
...............................................................................
Your fund's return during the volatile second half was 9.08%. As has been the
case recently, fund performance exceeded that of the Lipper Growth Funds Average
but was slightly behind the unmanaged Standard & Poor's 500 Stock Index.
Relative returns were similar for the full year, although absolute performance
was a robust 27.41%. During the second half, portfolio exposure to powerful
technology stocks benefited results, while our financial holdings constrained
performance. Within the universe of S&P 500 stocks, leadership was extremely
narrow as the top 50 stocks in the index accounted for most of the return. This
pattern was also true for the fund, since our large-cap holdings led the way and
smaller-company shares continued to lag.
YEAR-END DISTRIBUTIONS
Your Board of Directors declared a $0.25 per share income dividend and a $4.27
per share long-term capital gain distribution. These were paid on December 17,
1998, to shareholders of record on December 15, 1998. You should have received
your check or statement reflecting them as well as Form 1099-DIV summarizing
this information for 1998 tax purposes.
1
<PAGE>
- ----------------------------
Preparing For The Year 2000
- --------------------------------------------------------------------------------
The Year 2000 draws closer every day, and it holds special meaning beyond the
arrival of a new millennium. The issue for investors is that many computer
programs throughout the world use two digits instead of four to identify the
year and may assume the next century starts with 1900. If these programs are not
modified, they will not be able to correctly handle the century change when the
year changes from "99" to "00" on January 1, 2000, and they will no longer be
able to perform necessary functions. The Year 2000 issue affects all companies
and organizations.
T. Rowe Price has been taking steps to assure that its computer systems and
processes are capable of functioning in the Year 2000. Detailed plans for
remediation efforts have been developed and are currently being executed.
OUR PLAN OF ACTION
We began to address these issues several years ago by requiring that all new
systems process and store four-digit years. All critical systems have been
reprogrammed (including business applications required to service our customers
and processing infrastructure necessary to ensure the integrity of customer data
and investments), and they are currently being tested. Because we exchange data
electronically with customers and vendors, we are working with them to assess
the adequacy of their own compliance efforts. Our goal is to ensure the
continuation of the same level of service to all our mutual fund shareholders
and clients after December 31, 1999.
We are asking all vendors and companies we do business with for a Year 2000
compliance status, with the expectation that some organizations will not be able
to modify their interface files prior to December 31, 1999. In addition, we are
scheduling tests for critical vendors and companies that claim Year 2000
compliance to ensure that time-related data and calculations function properly
as we move into the next century.
SMOOTH TRANSITION PLANNED
We believe our programs and initiatives will provide a smooth transition into
the next millennium. We are assessing all systems providing products or services
to our retail mutual fund shareholders, retirement plan sponsors, and
participants, and we have modified them where necessary for the Year 2000.
The Securities Industry Association (SIA) is coordinating Year 2000 testing to
assure that securities markets, clearing corporations, depositories, and third
party service providers can send, receive, and process files and transactions
accurately. In late July 1998, the SIA completed a beta test of Year 2000
readiness. The test was considered successful in terms of transactions completed
and will serve as the basis for the SIA's industry-wide approach. During October
1998, T. Rowe Price completed its beta test of Year 2000 readiness with the SIA
and is ready for the industry-wide test that is scheduled for March and April
1999.
For a more detailed discussion of our Year 2000 effort, as well as continuing
updates on our progress, please check our Web site (www.troweprice.com).
2
<PAGE>
MARKET ENVIRONMENT
During the past six months, several negative developments threatened to
interrupt the bull market and the robust U.S. economy. First, global turmoil
reappeared in the wake of a loan default in Russia, which created fear of a
credit crunch here and abroad, prompting bankers to rein in their exposure. The
Russian situation and its impact on Latin America, in particular, resulted in
notable damage to the market as investors worried it might affect the U.S.
economy. This precarious state of affairs was compounded by the lack of viable
corrective action in Japan to stabilize its sagging economy.
- --------------------------
Portfolio Characteristics
- ----------------------------------------------------------------------------
Growth Stock
Domestic
As of 12/31/98 Portfolio S&P 500
- ----------------------------------------------------------------------------
Earnings Growth Rate
Past 5 Years 17.6% 16.0%
.......................................................................
Projected 5 Years* 15.9 13.6
.......................................................................
Dividend Growth Rate
Past 5 Years 13.6 11.3
.......................................................................
Projected 5 Years* 12.0 11.0
.......................................................................
Return on Equity
Past 5 Years 24.8 23.3
.......................................................................
Long-Term Debt as
Percent of Capital 27.5 32.7
............................................................................
P/E Ratio (12-month forward
projected earnings) 30.0X 25.4X
............................................................................
* Forecasts are based on T. Rowe Price research and are in no way indicative of
future investment returns.
In the midst of the turbulence, the Federal Reserve lowered short-term rates
three times during the last few months, and the International Monetary Fund
assembled a package designed to stabilize Brazil, the linchpin of Latin America.
These measures calmed investors and restored consumer confidence before the
damage could spread to the U.S. While manufacturing slowed noticeably, other
elements of the economy remained relatively strong. Perceptions that Fed and IMF
actions would be successful, combined with the public's hearty appetite for
stocks, drove share prices up sharply during the final months of 1998.
Technology and retail stocks rebounded with especially great vigor. Interest in
Internet stocks seemed boundless, and initial public offerings for virtually
every company with a ".com" in its name were greeted enthusiastically.
INVESTMENT REVIEW
Several large portfolio holdings did quite well during the past six months.
These included America Online, which we bought early in
3
<PAGE>
the year; Network Associates; EMC; Microsoft; MCI WorldCom; and Intel. In other
sectors, fund performance was boosted by sizable positions in Freddie Mac,
Safeway, Home Depot, Philip Morris, and Danaher. On the international side,
Mannesman, Wolters Kluwer, and Hutchison Whampoa contributed positively.
A few financial stocks detracted from results. Citigroup and BankAmerica were
negatively affected by trading activities and bad foreign loans. Our insurance
holdings also suffered from a generally soft pricing environment. In addition,
several real estate companies (Starwood Hotels & Resorts and some of our REITs),
as well as foreign holding Tomkins, were hurt by declining stock prices even
though their earnings grew-- although at a slightly slower pace than expected.
As usual, earnings disappointments took their toll on a few positions, including
Parametric Technology and United HealthCare. In most cases, we either held or
added to these holdings.
PORTFOLIO MANAGEMENT
The continued strong performance of a narrow group of stocks poses a significant
dilemma. While we prefer to own shares of leading companies in growing markets,
including those with strong management and cash flow, we also need to keep an
eye on valuations. As the market has become increasingly narrow, the gap between
the "Nifty Fifty" and other good companies has widened too far, in our opinion.
We mentioned in our last fund report that we were marginally trimming some of
the Nifty Fifty stocks we own and adding to companies that better fit our
criteria for selection but are not overpriced.
[PIE CHART APPEARS HERE]
Reserves 5%
Technology 10%
Consumer Services 11%
Business Services and Transportation 12%
Other 14%
Financial 15%
Foreign* 16%
Consumer Nondurables 17%
* The percentage of foreign holdings is lower on page 16, since several were
classified under various industry sectors.
Based on net assets as of 12/31/98.
This strategy led us to buy excellent financial companies such as Bank of New
York and Associates First Capital, both of which have solid growth records,
expectations of continued growth, and reasonable valuations. We added to our
media holdings with the purchase of
4
<PAGE>
Clear Channel Communications, Infinity Broadcasting, and Fox Entertainment
Group. On the international front, we bought Telecom Italia, whose share price
had languished because of management concerns. Almost all of these buys worked
out well when the market recovered toward the end of the year.
On the sale side, we eliminated Tenet Healthcare, Hilton, Oracle, First Data,
and Granada due to concerns about their fundamentals. We also trimmed our
positions in Danaher and America Online because of their high valuations.
OUTLOOK
The U.S. stock market has continued to advance in the face of conflicting
forces. On the positive side, the Federal Reserve has been masterfully
orchestrating monetary policy to maintain a delicate economic balance, and U.S.
companies are world leaders and focused on stockholder interests. On the
negative side of the ledger, stock valuations are extremely high, the
manufacturing sector is slowing, consumers continue to spend more and save
little or nothing, and the President has been impeached and has to stand trial.
In addition, many foreign economies are still troubled. So, while the stock
market enjoyed another year of strong returns, earnings and cash flow at many
companies show little growth.
[LINE CHART APPEARS HERE]
- --------------------------------------------------
Growth Stock Fund P/E Relative to the S&P 500 P/E
- --------------------------------------------------------------------------------
1.469 Dec-86 1.106
Dec-73 1.459 1.108
1.419 1
1.371 1.063
1.247 Dec-87 1.024
Dec-74 1.317 0.992
1.45 1.066
1.429 1.105
1.32 Dec-88 1.191
Dec-75 1.439 1.207
1.349 1.153
1.32 1.209
1.33 Dec-89 1.028
Dec-76 1.295 1
1.218 1.035
1.224 0.944
1.207 Dec-90 0.985
Dec-77 1.215 1.072
1.219 1.007
1.263 1.026
1.193 Dec-91 1.144
Dec-78 1.145 1.152
1.09 1.019
1.118 1.019
1.061 Dec-92 1.122
Dec-79 1.025 1.054
1.088 1.055
1.111 1.072
1.195 Dec-93 1.149
Dec-80 1.295 1.086
1.313 1.118
1.312 1.17
1.426 Dec-94 1.316
Dec-81 1.267 1.196
1.235 1.145
1.186 1.13
1.286 Dec-95 1.133
Dec-82 1.483 1.147
1.522 1.09
1.424 1.12
1.5 Dec-96 1.085
Dec-83 1.473 1.074
1.264 1.016
1.233 1.025
1.103 Dec-97 0.95
Dec-84 1.185 0.986
1.196 1.005
1.216 0.967
1.171 Dec-98 1.019
Dec-85 1.226
1.204
1.163
1.122
This chart is intended to show the history of the average (unweighted) P/E ratio
of the fund's U.S. portfolio companies compared with the P/E ratio of the S&P
500 Stock Index. Earnings per share are estimated by the fund's investment
manager at each quarter-end.
5
<PAGE>
Stocks normally do not continue to move upward indefinitely at a faster rate
than earnings and cash flow, which means that the rise in stock prices could
moderate in 1999. However, we are confident that the earnings and cash flow
growth of the companies we have selected for your portfolio will continue to
outpace the overall market. Therefore, we remain optimistic about the
performance prospects for your fund over the long term.
As always, we will continue to work diligently on your behalf in our search for
attractive ideas, both here and abroad.
Respectfully submitted,
/s/ Robert W. Smith
Robert W. Smith
Chairman of the Investment Advisory Committee
January 22, 1999
6
<PAGE>
T. Rowe Price Growth Stock Fund
- --------------------------------------------------------------------------------
- ---------------------
Portfolio Highlights
- --------------------------------------------------------------------------------
TWENTY-FIVE LARGEST HOLDINGS
Percent of
Net Assets
12/31/98
- --------------------------------------------------------------------------------
Freddie Mac 3.1%
................................................................................
GE 2.4
................................................................................
MCI WorldCom 2.4
................................................................................
Microsoft 2.1
................................................................................
Wells Fargo 2.0
- --------------------------------------------------------------------------------
Tyco International 1.9
................................................................................
Berkshire Hathaway 1.7
................................................................................
Network Associates 1.7
................................................................................
Safeway 1.5
................................................................................
Citigroup 1.5
- --------------------------------------------------------------------------------
Fannie Mae 1.4
................................................................................
Merck 1.4
................................................................................
Danaher 1.4
................................................................................
Bristol-Myers Squibb 1.4
................................................................................
Philip Morris 1.3
- --------------------------------------------------------------------------------
Waste Management 1.3
................................................................................
Intel 1.3
................................................................................
Pfizer 1.3
................................................................................
AlliedSignal 1.2
................................................................................
Royal Dutch Petroleum 1.2
- --------------------------------------------------------------------------------
UNUM 1.1
................................................................................
Tomkins 1.1
................................................................................
Eli Lilly 1.1
................................................................................
First Union 1.1
................................................................................
Bank of New York 1.1
- --------------------------------------------------------------------------------
Total 39.0%
7
<PAGE>
T. Rowe Price Growth Stock Fund
- --------------------------------------------------------------------------------
- ---------------------
Portfolio Highlights
- --------------------------------------------------------------------------------
MAJOR PORTFOLIO CHANGES
(Listed in descending order of size)
6 Months Ended 12/31/98
Ten Largest Purchases Ten Largest Sales
- --------------------------------------------------------------------------------
Bank of New York * Danaher
.................................... ........................................
Northern Telecom * First Data **
.................................... ........................................
Fox Entertainment Group * Oracle **
.................................... ........................................
Associates First Capital * AutoZone **
.................................... ........................................
Network Associates Tellabs **
.................................... ........................................
Saks * Analog Devices **
.................................... ........................................
Time Warner * Campbell **
.................................... ........................................
Tomkins America Online
.................................... ........................................
Telecom Italia * Tenet Healthcare **
.................................... ........................................
Schering-Plough * Granada **
.................................... ........................................
* Position added
** Position eliminated
8
<PAGE>
T. Rowe Price Growth Stock Fund
- --------------------------------------------------------------------------------
- -----------------------
Performance Comparison
- --------------------------------------------------------------------------------
This chart shows the value of a hypothetical $10,000 investment in the fund over
the past 10 fiscal year periods or since inception (for funds lacking 10-year
records). The result is compared with a broad-based average or index. The index
return does not reflect expenses, which have been deducted from the fund's
return.
[LINE CHART APPEARS HERE]
GROWTH STOCK FUND
- --------------------------------------------------------------------------------
Date S&P 500 Index Growth Stock Fund
---- ------------- -----------------
12/31/88 $10,000 $10,000
12/31/89 $13,169 $12,543
12/31/90 $12,710 $12,004
12/31/91 $16,647 $16,061
12/31/92 $17,916 $17,024
12/31/93 $19,721 $19,673
12/31/94 $19,982 $19,847
12/31/95 $27,491 $25,993
12/31/96 $33,803 $31,633
12/31/97 $45,081 $40,038
12/31/98 $57,958 $51,012
- -------------------------------------
Average Annual Compound Total Return
- --------------------------------------------------------------------------------
This table shows how the fund would have performed each year if its actual (or
cumulative) returns for the periods shown had been earned at a constant rate.
Periods Ended 12/31/98 1 Year 3 Years 5 Years 10 Years
- --------------------------------------------------------------------------------
Growth Stock Fund 27.41% 25.20% 20.99% 17.70%
................................................................................
Investment return and principal value represent past performance and will vary.
Shares may be worth more or less at redemption than at original purchase.
9
<PAGE>
T. Rowe Price Growth Stock Fund
- --------------------------------------------------------------------------------
- ---------------------
Financial Highlights For a share outstanding throughout each period
- --------------------------------------------------------------------------------
Year
Ended
12/31/98 12/31/97 12/31/96 12/31/95 12/31/94
NET ASSET VALUE
Beginning of period $ 28.99 $ 26.18 $ 23.35 $ 18.75 $ 20.42
.....................................................
Investment activities
Net investment income 0.22 0.23 0.19 0.23 0.18
Net realized and
unrealized gain (loss) 7.38 6.65 4.89 5.57 (0.01)
.....................................................
Total from
investment activities 7.60 6.88 5.08 5.80 0.17
.....................................................
Distributions
Net investment income (0.25) (0.20) (0.19) (0.23) (0.18)
Net realized gain (4.27) (3.87) (2.06) (0.97) (1.66)
.....................................................
Total distributions (4.52) (4.07) (2.25) (1.20) (1.84)
.....................................................
NET ASSET VALUE
End of period $ 32.07 $ 28.99 $ 26.18 $ 23.35 $ 18.75
-----------------------------------------------------
Ratios/Supplemental Data
Total return+ 27.41% 26.57% 21.70% 30.97% 0.89%
................................................................................
Ratio of expenses to
average net assets 0.74% 0.75% 0.77% 0.80% 0.81%
................................................................................
Ratio of net investment
income to average
net assets 0.67% 0.75% 0.74% 1.09% 0.91%
................................................................................
Portfolio turnover rate 54.8% 40.9% 49.0% 42.5% 54.0%
................................................................................
Net assets, end of period
(in millions) $ 5,041 $ 3,988 $ 3,431 $ 2,762 $ 2,068
................................................................................
+ Total return reflects the rate that an investor would have earned on an
investment in the fund during each period, assuming reinvestment of all
distributions.
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
T. Rowe Price Growth Stock Fund
- --------------------------------------------------------------------------------
December 31, 1998
- -------------------------
Portfolio of Investments Shares Value
- --------------------------------------------------------------------------------
In thousands
Common Stocks and Warrants 95.1%
FINANCIAL 17.6%
Bank and Trust 5.4%
Bank of New York 1,350,000 $ 54,337
...............................................................................
BankAmerica 770,625 46,334
...............................................................................
First Union 895,000 54,427
...............................................................................
Mellon Bank 225,000 15,469
...............................................................................
Wells Fargo 2,530,000 101,042
...............................................................................
271,609
.............
Insurance 3.8%
ACE Limited 1,525,000 52,517
...............................................................................
Aetna 285,000 22,408
...............................................................................
PartnerRe Holdings 825,409 37,763
...............................................................................
PartnerRe Holdings, Warrants, 11/4/00 * 331,665 9,618
...............................................................................
Travelers Property Casualty (Class A) 450,000 13,950
...............................................................................
UNUM 960,000 56,040
...............................................................................
192,296
.............
Financial Services 8.4%
AMBAC 400,000 24,075
...............................................................................
Associates First Capital (Class A) 910,800 38,595
...............................................................................
Citigroup 1,534,200 75,943
...............................................................................
Fairfax Financial (CAD) * 109,400 38,650
...............................................................................
Fannie Mae 970,400 71,809
...............................................................................
Freddie Mac 2,395,000 154,328
...............................................................................
Morgan Stanley Dean Witter 250,000 17,750
...............................................................................
421,150
.............
Total Financial 885,055
.............
UTILITIES 1.0%
Telephone 1.0%
GTE 250,000 16,250
...............................................................................
SBC Communications 600,000 32,175
...............................................................................
Total Utilities 48,425
............
11
<PAGE>
T. Rowe Price Growth Stock Fund
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
In thousands
CONSUMER NONDURABLES 17.0%
Beverages 1.4%
Coca-Cola 300,000 $ 20,063
...............................................................................
PepsiCo 1,251,300 51,225
...............................................................................
71,288
.............
Food Processing 0.6%
Sara Lee 1,060,000 29,879
...............................................................................
29,879
.............
Hospital Supplies/Hospital Management 1.9%
Guidant 185,000 20,396
...............................................................................
HealthSouth * 1,607,600 24,818
...............................................................................
United HealthCare 1,182,400 50,917
...............................................................................
96,131
.............
Biotechnology 1.5%
Biogen * 425,700 35,306
...............................................................................
Genentech * 500,000 39,844
...............................................................................
75,150
.............
Pharmaceuticals 8.2%
American Home Products 550,000 30,972
...............................................................................
Bristol-Myers Squibb 524,800 70,225
...............................................................................
Eli Lilly 620,000 55,102
...............................................................................
Johnson & Johnson 465,000 39,002
...............................................................................
Merck 485,000 71,628
...............................................................................
Pfizer 505,000 63,346
...............................................................................
Schering-Plough 530,000 29,283
...............................................................................
Warner-Lambert 710,000 53,383
...............................................................................
412,941
.............
Miscellaneous Consumer Products 3.4%
Cendant * 700,000 13,344
...............................................................................
Gillette 410,000 19,808
...............................................................................
Hasbro 500,000 18,062
...............................................................................
McKesson 290,000 22,928
...............................................................................
Newell 150,000 6,187
...............................................................................
Philip Morris 1,225,900 65,586
...............................................................................
Procter & Gamble 230,000 21,002
...............................................................................
166,917
.............
Total Consumer Nondurables 852,306
.............
12
<PAGE>
T. Rowe Price Growth Stock Fund
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
In thousands
CONSUMER SERVICES 11.7%
Restaurants 0.4%
McDonald's 250,000 $ 19,156
...............................................................................
19,156
.................
General Merchandisers 2.3%
Fred Meyer * 699,700 42,157
...............................................................................
Safeway * 1,260,000 76,781
...............................................................................
118,938
.................
Specialty Merchandisers 3.9%
CVS 442,100 24,316
...............................................................................
Home Depot 850,000 52,009
...............................................................................
Rite Aid 540,000 26,764
...............................................................................
Saks * 1,000,000 31,562
...............................................................................
Tag Heuer (CHF) * 44,195 3,043
...............................................................................
Tag Heuer ADR * 1,060,600 7,557
...............................................................................
Wal-Mart 630,000 51,306
...............................................................................
196,557
.................
Entertainment and Leisure 1.1%
Carnival (Class A) 462,400 22,195
...............................................................................
Disney 450,000 13,500
...............................................................................
Mirage Resorts * 1,200,000 17,925
...............................................................................
53,620
.................
Media and Communications 4.0%
CBS 1,500,000 49,125
...............................................................................
Clear Channel Communications * 469,100 25,566
...............................................................................
Fox Entertainment Group * 1,524,500 38,399
...............................................................................
Infinity Broadcasting * 1,005,700 27,531
...............................................................................
Time Warner 400,000 24,825
...............................................................................
Tribune 520,000 34,320
...............................................................................
199,766
.................
Total Consumer Services 588,037
.................
CONSUMER CYCLICALS 2.3%
Building and Real Estate 2.3%
Crescent Real Estate Equities, REIT 950,000 21,850
...............................................................................
Masco 1,300,000 37,375
...............................................................................
Security Capital U.S. Realty * 1,715,000 16,978
...............................................................................
13
<PAGE>
T. Rowe Price Growth Stock Fund
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
In thousands
Security Capital U.S. Realty (Class A) * 965,000 $ 9,554
...............................................................................
Starwood Hotels & Resorts, REIT 1,343,200 30,474
...............................................................................
Total Consumer Cyclicals 116,231
.............
ELECTRONIC TECHNOLOGY 1.6%
Networking 1.6%
Ascend Communications * 440,000 28,944
...............................................................................
Cisco Systems * 540,350 50,168
...............................................................................
Total Electronic Technology 79,112
.............
TECHNOLOGY 8.6%
Electronic Components 2.7%
Intel 545,000 64,599
...............................................................................
Maxim Integrated Products * 1,201,400 52,449
...............................................................................
Texas Instruments 192,200 16,445
...............................................................................
133,493
.............
Electronic Systems 1.9%
Dell Computer * 360,000 26,358
...............................................................................
EMC * 500,000 42,500
...............................................................................
Hewlett-Packard 425,000 29,033
...............................................................................
97,891
.............
Telecommunications 4.0%
AirTouch Communications * 615,000 44,357
...............................................................................
Cox Communications (Class A) * 352,200 24,346
...............................................................................
MCI WorldCom * 1,681,950 120,732
...............................................................................
Nokia ADR 120,000 14,453
...............................................................................
203,888
.............
Total Technology 435,272
.............
CAPITAL EQUIPMENT 7.6%
Electrical Equipment 3.6%
AlliedSignal 1,353,600 59,981
...............................................................................
GE 1,185,000 120,944
...............................................................................
180,925
.............
Capital Equipment 1.9%
Tyco International 1,242,450 93,727
...............................................................................
93,727
.............
14
<PAGE>
T. Rowe Price Growth Stock Fund
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
In thousands
Machinery 2.1%
Danaher 1,305,000 $ 70,878
...............................................................................
Teleflex 767,800 35,031
...............................................................................
105,909
.............
Total Capital Equipment 380,561
.............
BUSINESS SERVICES AND
TRANSPORTATION 11.5%
Miscellaneous Business Services 3.1%
Mutual Risk Management 1,150,332 45,007
...............................................................................
Omnicom 800,000 46,400
...............................................................................
Waste Management 1,400,000 65,275
...............................................................................
156,682
.............
Computer Services 1.4%
America Online 240,000 36,960
...............................................................................
Automatic Data Processing 400,000 32,075
...............................................................................
69,035
.............
Computer Software 7.0%
BMC Software * 1,143,100 50,975
...............................................................................
Compuware * 325,000 25,380
...............................................................................
Microsoft * 755,000 104,591
...............................................................................
Network Associates * 1,270,000 84,257
...............................................................................
Parametric Technology * 2,600,000 42,250
...............................................................................
PLATINUM technology * 901,700 17,330
...............................................................................
Sterling Commerce * 692,900 31,180
...............................................................................
355,963
.............
Total Business Services and Transportation 581,680
.............
ENERGY 3.2%
Energy Services 0.4%
Halliburton 800,000 23,700
...............................................................................
23,700
.............
Integrated Petroleum - International 2.8%
Chevron 410,000 34,004
...............................................................................
Mobil 540,000 47,048
...............................................................................
Royal Dutch Petroleum ADR 1,225,000 58,647
...............................................................................
139,699
.............
Total Energy 163,399
.............
15
<PAGE>
T. Rowe Price Growth Stock Fund
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
In thousands
PROCESS INDUSTRIES 0.8%
Paper and Paper Products 0.8%
Kimberly-Clark 775,000 $ 42,238
...............................................................................
Total Process Industries 42,238
...............
MISCELLANEOUS 3.4%
Conglomerates 1.7%
Berkshire Hathaway (Class A) * 1,250 87,500
...............................................................................
87,500
...............
Other Miscellaneous Securities 1.7% 88,883
...............................................................................
Total Miscellaneous 176,383
...............
FOREIGN 8.8%
Europe 6.9%
Ahold (NLG) 344,900 12,744
...............................................................................
Gehe (DEM) 261,100 18,013
...............................................................................
Getronics (NLG) 431,644 21,373
...............................................................................
Mannesmann (DEM) 230,000 26,353
...............................................................................
Novartis (CHF) 20,500 40,293
...............................................................................
Rentokil Group (GBP) 3,690,000 27,822
...............................................................................
S I G Schweis (CHF) 16,000 9,434
...............................................................................
Telecom Italia (ITL) 3,300,000 28,195
...............................................................................
Tomkins (GBP) 11,660,000 55,404
...............................................................................
UBS (CHF) 30,000 9,216
...............................................................................
Unilever N.V. ADR 100,000 8,294
...............................................................................
VNU (NLG) 950,000 35,811
...............................................................................
Wolters Kluwer (NLG) 134,051 28,677
...............................................................................
Zeneca Group (GBP) 600,000 26,137
...............................................................................
347,766
...............
Far East 0.8%
HSBC Holdings (HKD) 375,600 9,357
...............................................................................
Hutchison Whampoa (HKD) 4,649,600 32,902
...............................................................................
42,259
...............
Other Foreign 1.1%
Kimberly-Clark de Mexico (Class A) (MXN) 3,061,000 9,733
...............................................................................
Telebras ADR * 434,300 31,568
...............................................................................
16
<PAGE>
T. Rowe Price Growth Stock Fund
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
In thousands
Toronto-Dominion Bank (CAD) 400,000 $ 14,100
...............................................................................
55,401
...............
Total Foreign 445,426
...............
Total Common Stocks (Cost $2,746,385) 4,794,125
...............
Short-Term Investments 5.1%
Money Market Fund 5.1%
Reserve Investment Fund, 5.42% # + 255,560,103 255,560
...............................................................................
Total Short-Term Investments (Cost $255,560) 255,560
...............
Total Investments in Securities
100.2% of Net Assets (Cost $3,001,945) $ 5,049,685
Other Assets Less Liabilities (8,437)
...............
NET ASSETS $ 5,041,248
---------------
# Seven-day yield
+ Affiliated company
* Non-income producing
ADR American Depository Receipt
REIT Real Estate Investment Trust
CAD Canadian dollar
CHF Swiss franc
DEM German deutschemark
GBP British sterling
HKD Hong Kong dollar
ITL Italian lira
MXN Mexican Peso
NLG Dutch guilder
The accompanying notes are an integral part of these financial statements.
17
<PAGE>
T. Rowe Price Growth Stock Fund
- --------------------------------------------------------------------------------
December 31, 1998
- ------------------------------------
Statement of Assets and Liabilities
- --------------------------------------------------------------------------------
In thousands
Assets
Investments in securities, at value
Affiliated companies (cost $255,560) $ 255,560
Other companies (cost $2,746,385) 4,794,125
.............
Total investments in securities 5,049,685
Other assets 37,078
.............
Total assets 5,086,763
.............
Liabilities
Total liabilities 45,515
.............
NET ASSETS $ 5,041,248
-------------
Net Assets Consist of:
Accumulated net investment income - net of distributions $ (157)
Accumulated net realized gain/loss - net of distributions 180,459
Net unrealized gain (loss) 2,047,764
Paid-in-capital applicable to 157,196,988 shares of
$1.00 par value capital stock outstanding;
200,000,000 shares authorized 2,813,182
.............
NET ASSETS $ 5,041,248
-------------
NET ASSET VALUE PER SHARE $ 32.07
-------------
The accompanying notes are an integral part of these financial statements.
18
<PAGE>
T. Rowe Price Growth Stock Fund
- --------------------------------------------------------------------------------
- ------------------------
Statement of Operations
- --------------------------------------------------------------------------------
In thousands
Year
Ended
12/31/98
Investment Income
Income
Dividend $ 43,998
Interest (including $17,570 from affiliated companies) 18,737
.............
Total income 62,735
.............
Expenses
Investment management 25,573
Shareholder servicing 6,578
Custody and accounting 366
Prospectus and shareholder reports 314
Registration 39
Legal and audit 22
Directors 18
Miscellaneous 36
.............
Total expenses 32,946
.............
Net investment income 29,789
.............
Realized and Unrealized Gain (Loss)
Net realized gain (loss)
Securities 632,820
Foreign currency transactions (753)
.............
Net realized gain (loss) 632,067
.............
Change in net unrealized gain or loss
Securities 429,288
Other assets and liabilities
denominated in foreign currencies 66
.............
Change in net unrealized gain or loss 429,354
.............
Net realized and unrealized gain (loss) 1,061,421
.............
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 1,091,210
-------------
The accompanying notes are an integral part of these financial statements.
19
<PAGE>
T. Rowe Price Growth Stock Fund
- --------------------------------------------------------------------------------
- -------------------------------------
Statement of Changes in Net Assets
- --------------------------------------------------------------------------------
In thousands
Year
Ended
12/31/98 12/31/97
Increase (Decrease) in Net Assets
Operations
Net investment income $ 29,789 $ 28,945
Net realized gain (loss) 632,067 582,134
Change in net unrealized gain or loss 429,354 295,330
...........................
Increase (decrease) in net assets from operations 1,091,210 906,409
...........................
Distributions to shareholders
Net investment income (34,624) (24,428)
Net realized gain (590,994) (472,912)
...........................
Decrease in net assets from distributions (625,618) (497,340)
...........................
Capital share transactions *
Shares sold 685,694 435,680
Distributions reinvested 590,388 469,793
Shares redeemed (688,824) (756,953)
...........................
Increase (decrease) in net assets from capital
share transactions 587,258 148,520
...........................
Net Assets
Increase (decrease) during period 1,052,850 557,589
Beginning of period 3,988,398 3,430,809
...........................
End of period $ 5,041,248 $ 3,988,398
---------------------------
*Share information
Shares sold 21,358 14,940
Distributions reinvested 19,818 16,507
Shares redeemed (21,552) (24,930)
...........................
Increase (decrease) in shares outstanding 19,624 6,517
The accompanying notes are an integral part of these financial statements.
20
<PAGE>
T. Rowe Price Growth Stock Fund
- --------------------------------------------------------------------------------
December 31, 1998
- -------------------------------
Notes to Financial Statements
- --------------------------------------------------------------------------------
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
T. Rowe Price Growth Stock Fund, Inc. (the fund) is registered under the
Investment Company Act of 1940 as a diversified, open-end management investment
company and commenced operations on January 1, 1950.
The accompanying financial statements are prepared in accordance with generally
accepted accounting principles for the investment company industry; these
principles may require the use of estimates by fund management.
Valuation Equity securities listed or regularly traded on a securities exchange
are valued at the last quoted sales price on the day the valuations are made. A
security which is listed or traded on more than one exchange is valued at the
quotation on the exchange determined to be the primary market for such security.
Listed securities not traded on a particular day and securities regularly traded
in the over-the-counter market are valued at the mean of the latest bid and
asked prices. Other equity securities are valued at a price within the limits of
the latest bid and asked prices deemed by the Board of Directors, or by persons
delegated by the Board, best to reflect fair value.
Investments in mutual funds are valued at the closing net asset value per share
of the mutual fund on the day of valuation.
For purposes of determining the fund's net asset value per share, the U.S.
dollar value of all assets and liabilities initially expressed in foreign
currencies is determined by using the mean of the bid and offer prices of such
currencies against U.S. dollars quoted by a major bank.
Assets and liabilities for which the above valuation procedures are
inappropriate or are deemed not to reflect fair value are stated at fair value
as determined in good faith by or under the supervision of the officers of the
fund, as authorized by the Board of Directors.
Affiliated Companies As defined by the Investment Company Act of 1940, an
affiliated company is one in which the fund owns at least 5% of the outstanding
voting securities.
Currency Translation Assets and liabilities are translated into U.S. dollars at
the prevailing exchange rate at the end of the reporting period. Purchases and
sales of securities and income and expenses are translated into U.S. dollars at
the prevailing exchange rate on the dates of such transactions. The effect of
changes in foreign exchange rates on realized and unrealized security gains and
losses is reflected as a component of such gains and losses.
21
<PAGE>
T. Rowe Price Growth Stock Fund
- --------------------------------------------------------------------------------
Other Income and expenses are recorded on the accrual basis. Investment
transactions are accounted for on the trade date. Realized gains and losses are
reported on the identified cost basis. Dividend income and distributions to
shareholders are recorded by the fund on the ex-dividend date. Income and
capital gain distributions are determined in accordance with federal income tax
regulations and may differ from those determined in accordance with generally
accepted accounting principles.
NOTE 2 - INVESTMENT TRANSACTIONS
Purchases and sales of portfolio securities, other than short-term securities,
aggregated $2,272,909,000 and $2,269,913,000 respectively, for the year ended
December 31, 1998.
NOTE 3 - FEDERAL INCOME TAXES
No provision for federal income taxes is required since the fund intends to
continue to qualify as a regulated investment company and distribute all of its
taxable income.
At December 31, 1998, the cost of investments for federal income tax purposes
was substantially the same as for financial reporting and totaled
$3,001,945,000. Net unrealized gain aggregated $2,047,740,000 at period end, of
which $2,127,804,000 related to appreciated investments and $80,064,000 to
depreciated investments.
NOTE 4 - RELATED PARTY TRANSACTIONS
The investment management agreement between the fund and T. Rowe Price
Associates, Inc. (the manager) provides for an annual investment management fee,
of which $2,351,000, was payable at December 31, 1998. The fee is computed daily
and paid monthly, and consists of an individual fund fee equal to 0.25% of
average daily net assets and a group fee. The group fee is based on the combined
assets of certain mutual funds sponsored by the manager or Rowe Price-Fleming
International, Inc. (the group). The group fee rate ranges from 0.48% for the
first $1 billion of assets to 0.30% for assets in excess of $80 billion. At
December 31, 1998, and for the year then ended, the effective annual group fee
rate was 0.32%. The fund pays a pro-rata share of the group fee based on the
ratio of its net assets to those of the group.
22
<PAGE>
T. Rowe Price Growth Stock Fund
- --------------------------------------------------------------------------------
In addition, the fund has entered into agreements with the manager and two
wholly owned subsidiaries of the manager, pursuant to which the fund receives
certain other services. The manager computes the daily share price and maintains
the financial records of the fund. T. Rowe Price Services, Inc. is the fund's
transfer and dividend disbursing agent and provides shareholder and
administrative services to the fund. T. Rowe Price Retirement Plan Services,
Inc. provides subaccounting and recordkeeping services for certain retirement
accounts invested in the fund. The fund incurred expenses pursuant to these
related party agreements totaling approximately $4,828,000 for the year ended
December 31, 1998, of which $420,000 was payable at year-end.
Additionally, the fund is one of several T. Rowe Price-sponsored mutual funds
(underlying funds) in which the T. Rowe Price Spectrum Funds (Spectrum) may
invest. Spectrum does not invest in the underlying funds for the purpose of
exercising management or control. Expenses associated with the operation of
Spectrum are borne by each underlying fund to the extent of estimated savings to
it and in proportion to the average daily value of its shares owned by Spectrum,
pursuant to special servicing agreements between and among Spectrum, the
underlying funds, T. Rowe Price, and, in the case of T. Rowe Price Spectrum
International, Rowe Price-Fleming International. Spectrum Growth Fund held
approximately 7.1% of the outstanding shares of the Growth Stock Fund at
December 31, 1998. For the year then ended, the fund was allocated $828,000 of
Spectrum expenses, $264,000 of which was payable at period-end.
The fund may invest in the Reserve Investment Fund and Government Reserve
Investment Fund (collectively, the Reserve Funds), open-end management
investment companies managed by T. Rowe Price Associates, Inc. The Reserve Funds
are offered as cash management options only to mutual funds and other accounts
managed by T. Rowe Price and its affiliates and are not available to the public.
The Reserve Funds pay no investment management fees. Distributions from the
Reserve Funds to the fund for the year ended December 31, 1998, totaled
$17,570,000 and are reflected as interest income in the accompanying Statement
of Operations.
During the year ended December 31, 1998, the fund, in the ordinary course of
business, placed security purchase and sale orders aggregating $5,502,000 with
certain affiliates of the manager and paid commissions of $28,000 related
thereto.
23
<PAGE>
T. Rowe Price Growth Stock Fund
- --------------------------------------------------------------------------------
- ------------------------------------
Report of Independent Accountants
- --------------------------------------------------------------------------------
To the Board of Directors and Shareholders of
T. Rowe Price Growth Stock Fund, Inc.
In our opinion, the accompanying statement of assets and liabilities and the
related statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
T. Rowe Price Growth Stock Fund, Inc. (the "Fund") at December 31, 1998, and the
results of its operations, the changes in its net assets and the financial
highlights for each of the fiscal periods presented, in conformity with
generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at December 31, 1998 by
correspondence with custodians, provide a reasonable basis for the opinion
expressed above.
PricewaterhouseCoopers LLP
Baltimore, Maryland
January 21, 1999
24
<PAGE>
T. Rowe Price Growth Stock Fund
- --------------------------------------------------------------------------------
- -------------------------------------------------------------
Tax Information (Unaudited) for the Tax Year Ended 12/31/98
- --------------------------------------------------------------------------------
We are providing this information as required by the Internal Revenue Code. The
amounts shown may differ from those elsewhere in this report because of
differences between tax and financial reporting requirements.
The fund's distributions to shareholders included $590,994,000 from long-term
capital gains, subject to the 20% rate gains category.
For corporate shareholders, $28,441,000 of the fund's distributed income and
short-term capital gains qualified for the dividends-received deduction.
25
<PAGE>
T. Rowe Price Shareholder Services
- --------------------------------------------------------------------------------
Investment Services and Information
KNOWLEDGEABLE SERVICE REPRESENTATIVES
By Phone 1-800-225-5132 Available Monday through Friday from
8 a.m. to 10 p.m. ET and weekends from 8:30 a.m. to 5 p.m. ET.
In Person Available in T. Rowe Price Investor Centers.
ACCOUNT SERVICES
Checking Available on most fixed income funds ($500 minimum).
Automatic Investing From your bank account or paycheck.
Automatic Withdrawal Scheduled, automatic redemptions.
Distribution Options Reinvest all, some, or none of your distributions.
Automated 24-Hour Services Including Tele*Access(R) and the T. Rowe Price Web
site on the Internet. Address: www.troweprice.com
BROKERAGE SERVICES*
Individual Investments Stocks, bonds, options, precious metals, and other
securities at a savings over full-service commission rates.
INVESTMENT INFORMATION
Combined Statement Overview of all your accounts with T. Rowe Price.
Shareholder Reports Fund managers' reviews of their strategies and results.
T. Rowe Price Report Quarterly investment newsletter discussing markets and
financial strategies.
Performance Update Quarterly review of all T. Rowe Price fund results.
Insights Educational reports on investment strategies and financial markets.
Investment Guides Asset Mix Worksheet, College Planning Kit, Diversifying
Overseas: A Guide to International Investing, Personal Strategy Planner,
Retirees Financial Guide, and Retirement Planning Kit.
* T. Rowe Price Brokerage is a division of T. Rowe Price Investment Services,
Inc., Member NASD/SIPC.
26
<PAGE>
T. Rowe Price Mutual Funds
- --------------------------------------------------------------------------------
STOCK FUNDS
............................
Domestic
Blue Chip Growth
Capital Appreciation
Capital Opportunity
Diversified Small-Cap Growth
Dividend Growth
Equity Income
Equity Index 500*
Extended Equity Market Index
Financial Services
Growth & Income
Growth Stock
Health Sciences
Media & Telecommunications
Mid-Cap Growth
Mid-Cap Value
New America Growth
New Era
New Horizons**
Real Estate
Science & Technology
Small-Cap Stock
Small-Cap Value
Spectrum Growth
Total Equity Market Index
Value
International/Global
Emerging Markets Stock
European Stock
Global Stock
International Discovery
International Growth & Income
International Stock
Japan
Latin America
New Asia
Spectrum International
BOND FUNDS
............................
Domestic Taxable
Corporate Income
GNMA
High Yield
New Income
Short-Term Bond
Short-Term U.S. Government
Spectrum Income
Summit GNMA
Summit Limited-Term Bond
U.S. Treasury Intermediate
U.S. Treasury Long-Term
Domestic Tax-Free
California Tax-Free Bond
Florida Intermediate Tax-Free***
Georgia Tax-Free Bond
Maryland Short-Term Tax-Free Bond
Maryland Tax-Free Bond
New Jersey Tax-Free Bond
New York Tax-Free Bond
Summit Municipal Income
Summit Municipal Intermediate
Tax-Free High Yield
Tax-Free Income
Tax-Free Intermediate Bond+
Tax-Free Short-Intermediate
Virginia Short-Term Tax-Free Bond
Virginia Tax-Free Bond
International/Global
Emerging Markets Bond
Global Bond++
International Bond
MONEY MARKET FUNDS+++
............................
Taxable
Prime Reserve
Summit Cash Reserves
U.S. Treasury Money
Tax-Free
California Tax-Free Money
New York Tax-Free Money
Summit Municipal Money Market
Tax-Exempt Money
BLENDED ASSET FUNDS
............................
Balanced
Personal Strategy Balanced
Personal Strategy Growth
Personal Strategy Income
Tax-Efficient Balanced
T. ROWE PRICE NO-LOAD
VARIABLE ANNUITY
............................
Equity Income Portfolio
International Stock Portfolio
Limited-Term Bond Portfolio
Mid-Cap Growth Portfolio
New America Growth Portfolio
Personal Strategy Balanced Portfolio
Prime Reserve Portfolio
* Formerly named Equity Index.
** Closed to new investors.
*** Formerly named Florida Insured Intermediate Tax-Free.
+ Formerly named Tax-Free Insured Intermediate Bond.
++ Formerly named Global Government Bond.
+++ Neither the funds nor their share prices are insured or guaranteed by the
U.S. government.
Please call for a prospectus. Read it carefully before investing.
The T. Rowe Price No-Load Variable Annuity [#V6021] is issued by Security
Benefit Life Insurance Company. In New York, it [#FSB201(11-96)] is issued by
First Security Benefit Life Insurance Company of New York, White Plains, NY.
T. Rowe Price refers to the underlying portfolios' investment managers and the
distributors, T. Rowe Price Investment Services, Inc.; T. Rowe Price Insurance
Agency, Inc.; and T. Rowe Price Insurance Agency of Texas, Inc. The Security
Benefit Group of Companies and the T. Rowe Price companies are not affiliated.
The variable annuity may not be available in all states. The contract has
limitations. Call a representative for costs and complete details of the
coverage.
27
<PAGE>
T. ROWE PRICE RETIREMENT PLANS AND RESOURCES
- --------------------------------------------------------------------------------
Retirement Plans and Resources
We recognize that saving for retirement is the number one investment goal for
most Americans. We can help you meet your retirement needs, whether you are
starting an IRA or designing a retirement program for your employees. T. Rowe
Price offers an assortment of retirement plans for individuals, the
self-employed, small businesses, corporations, and nonprofit organizations. We
provide recordkeeping, communications, and investment management services, as
well as a variety of educational materials, self-help planning guides, and
software tools to help you choose and implement a retirement plan appropriate
for you. For information or to request literature, call us at 1-800-638-5660.
IRAs AND QUALIFIED PLANS
................................................................................
Traditional IRA
Roth IRA
Rollover IRA
SEP-IRA
SIMPLE IRA
Profit Sharing
Money Purchase Pension
"Paired" Plans (Money Purchase Pension and Profit Sharing Plans)
401(k)
403(b)
457 Deferred Compensation
RETIREMENT RESOURCES AT T. ROWE PRICE
................................................................................
Planning and Informational Guides
Minimum Required Distributions Guide
Retirement Planning Kit
Retirees Financial Guide
Tax Considerations for Investors
Investment Kits
The IRA Investing Kit
Roth IRA Conversion Kit
Rollover IRA Kit
The T. Rowe Price SIMPLE IRA Plan Kit
The T. Rowe Price SEP-IRA Plan
The Simplified Keogh Plan(R) From T. Rowe Price
The T. Rowe Price 401(k) Century Plan(R) (for small businesses)
Money Purchase Pension/Profit Sharing Plan Kit
Investing for Retirement in Your 403(b) Account
The T. Rowe Price No-Load Variable Annuity Information Kit
Insights Reports
The Challenge of Preparing for Retirement
Financial Planning After Retirement
The Roth IRA: A Review
Software Packages
T. Rowe Price Retirement Planning Analyzer(TM) CD-ROM or diskette $19.95. To
order, please call 1-800-541-5760. Also available on the Internet for $9.95.
T. Rowe Price Variable Annuity Analyzer(TM) CD-ROM or diskette, free. To order,
please call 1-800-469-5304.
Many of these resources are also available for viewing or ordering on the
Internet at www.troweprice.com.
28
<PAGE>
T. Rowe Price Insights Reports
- --------------------------------------------------------------------------------
The Fundamentals of Investing
Whether you are unsure how to get started or are saving for a specific goal,
such as retirement or college, the T. Rowe Price Insights series can help you
make informed investment decisions. These reports, written in plain English
about fundamental investment topics, can be useful at every stage of your
investment journey. They cover a range of topics, from the basic, such as
getting started with mutual funds, to the more advanced, such as managing risk
through diversification or buying individual securities through a broker. To
request one or more Insights, call us at 1-800-638-5660.
INSIGHTS REPORTS
................................................................................
General Information
The ABCs of Giving
Back to Basics: The ABCs of Investing
The Challenge of Preparing for Retirement
Financial Planning After Retirement
Getting Started: Investing With Mutual Funds
The Roth IRA: A Review
Tax Information for Mutual Fund Investors
Investment Strategies
Conservative Stock Investing
Dollar Cost Averaging
Equity Index Investing
Growth Stock Investing
Investing for Higher Yield
Managing Risk Through Diversification
The Power of Compounding
Value Investing
Types of Securities
The Basics of International Stock Investing
The Basics of Tax-Free Investing
The Fundamentals of Fixed Income Investing
Global Bond Investing
Investing in Common Stocks
Investing in Emerging Growth Stocks
Investing in Financial Services Stocks
Investing in Health Care Stocks
Investing in High-Yield Municipal Bonds
Investing in Money Market Securities
Investing in Mortgage-Backed Securities
Investing in Natural Resource Stocks
Investing in Science and Technology Stocks
Investing in Small-Company Stocks
Understanding Derivatives
Understanding High-Yield "Junk" Bonds
Brokerage Insights
Combining Individual Securities With Mutual Funds
Getting Started: An Introduction to Individual Securities
What You Should Know About Bonds
What You Should Know About Margin and Short-Selling
What You Should Know About Options
What You Should Know About Stocks
T. Rowe Price Insights are also available for reading or downloading on the
Internet at www.troweprice.com.
29
<PAGE>
For yield, price, last transaction, current balance, or to conduct transactions,
24 hours, 7 days a week, call Tele*Access(R): 1-800-638-2587 toll free
For assistance with your existing fund account, call: Shareholder Service Center
1-800-225-5132 toll free 410-625-6500 Baltimore area
To open a brokerage account or obtain information, call: 1-800-638-5660 toll
free
Internet address: www.troweprice.com
T. Rowe Price Associates
100 East Pratt Street
Baltimore, Maryland 21202
This report is authorized for distribution only to shareholders and to others
who have received a copy of the prospectus of the T. Rowe Price Growth Stock
Fund(R).
Investor Centers:
101 East Lombard St.
Baltimore, MD 21202
T. Rowe Price
Financial Center
10090 Red Run Blvd.
Owings Mills, MD 21117
Farragut Square
900 17th Street, N.W.
Washington, D.C. 20006
ARCO Tower
31st Floor
515 South Flower St.
Los Angeles, CA 90071
4200 West Cypress St.
10th Floor
Tampa, FL 33607
[LOGO OF T.ROWEPRICE APPEARS HERE]
T. Rowe Price Investment Services, Inc., Distributor. F40-050 12/31/98
