A concept stock refers to a stock with a special connotation, as opposed to a performance stock. Performance stocks need good performance support. Concept stocks rely on certain themes, such as the concept of asset reorganization and the concept of three links, to support prices. This connotation is usually regarded as the theme of stock selection and stock trading, and has become a hot spot in the stock market.
Concept stock is a term in the stock market and a way of stock selection. Compared with blue-chip stocks, it must be supported by good business performance. Concept stocks only rely on the same theme and include the same type of stocks in the target portfolio of stock selection. Due to the advertising effect of concept stocks, there is no guarantee of profit.
The concept of stock market was originally a general term for a class of stocks with the same characteristics. For example, the concept of the Olympic Games means that there are business opportunities for hosting the Olympic Games.
A general term for a class of companies. There are many such concepts, such as network concept, 3G concept, WTO concept, biomedicine concept, overall listing concept and stock index futures concept. However, in the stock market, the inherent meaning of this concept is not only to belong to a certain stock category, but its extended meaning is market knowledge. For example, before the Internet became a concept, stocks related to the Internet could only be called sectors at best, which was a neutral definition, but the meaning of becoming a concept changed. The concept is a more positive and clear understanding of investment. Investors will make a very detailed analysis and research on the industry background, investment opportunities and future prospects of the concept stocks, and report with confidence.
Concept stocks have a strong advertising effect. A stock itself may not be very attractive, but once it is included in a concept, it will be closely watched by all investors. For example, Shanghai Merrill Lynch (600073) made canned food in the early stage, and later produced some products such as mineral water. Its performance is mediocre and its industry is outdated. Few investors pay attention to this company. 1999, the company became a network concept stock and set up an e-commerce website, mainly selling mineral water. So this stock immediately became the focus of the stock market.