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Investopedia explains 'Concept Company'
The belief that a new technology or trend will take off, or a belief in the vision and abilities of the company's executives, are typical reasons for investing in a concept company. Two factors can make it difficult to profit from concept company stocks, however. First, you have to purchase the stock when it's cheap, which means spotting a potential new trend before everyone else sees it and drives the stock price up. Second, the underlying company eventually has to prove itself with actual profits, or the stock's value will plummet.
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