Concept company,
Definition of Concept company:
In finance, the term “concept company” refers to an early-stage business that is developing a product or service that investors believe may be of substantial value in the future. .
A company that is of interest to investors because of being involved with a currently popular industry or product line, rather than because of strong earnings or dividends. Concept companies attract investors due to media focus on the type of product or service they provide, sometimes leading to investment bubbles in which stock price diverges from the value of the company.
Typically, concept companies have not yet proven their business models and are therefore relatively speculative. By contrast, mature companies are those whose prospects for growth and profitability have already been demonstrated.
How to use Concept company in a sentence?
- Historically, concept companies have tended to fall in and out of favor as different industries capture the imagination of investors.
- Concept companies typically have vague or unproven business models and are therefore viewed as highly speculative investments.
- A concept company is a business that is known to investors mainly for its association with a popular or promising industry sector.
Meaning of Concept company & Concept company Definition
