Stock Introductory Analysis What is a concept stock

Mondo Finance Updated on 2024-01-28

For many beginners, distinguishing different types is the first lesson in learning financial investment. Generally speaking, ** can be divided into blue chip stocks, high-performance stocks, growth stocks, cyclical stocks, etc., today, I have selected one of the common categories - concept stocks, to learn more about ** knowledge with you.

Concept stock is a kind of term, corresponding to performance stocks, generally refers to a special connotation, this connotation will generally be regarded as a stock selection and speculation theme, and rely on a certain theme concept to support. In contrast, performance stocks rely on good operating performance to support profits, while concept stocks are the same type of ** under a certain topic included in the stock selection target, common concepts include network concept, Olympic concept, biomedical concept, etc., these concepts represent the best hot spots in a certain period, and also represent the market consensus and investment consensus in this period.

The special thing about concept stocks is that it has a very strong advertising effect, when a certain ** is included in a concept, it will become the focus of common attention along with the attention of all investors. Therefore, the industrial background, investment opportunities and development prospects of the concept will become the content of careful consideration by investors.

Because the concept of stocks fundamentally, belongs to the "for the time being, there is not enough good performance support, but there is a huge space for imagination", in its huge advertising effect and "storytelling" ability, in most of the time, the concept stocks will show a very considerable explosive ** in the short term, but often only a small part of the concept stocks can really get considerable returns. Therefore, for Xiaobai, investing in concept stocks is a risky and challenging thing, and some investors will blindly buy a large number of them because they have heard the news that a certain sector has "huge development potential and will rise sharply", but they have suffered a tragic fall limit, resulting in huge property losses.

All in all, we must always keep in mind that the return will always go hand in hand with the risk, and when investing, we must remain calm and rational, and never be carried away by the gimmick of short-term huge returns.

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