Keyword: Concept Stocks

Are the shares of companies whose future health and prosperity are tied to the success or failure of an untried and unproven concept. They may deserve a place in your portfolio, but only if you can accept the large measure of risk which they carry. Unfortunately, concept stocks are often purchased by wishful thinkers who tell themselves that they have bought “junior growth stocks”. A concept stock may have a limited record of growth, but by definition it has not proved itself under the rigorous test of time. Concept stocks are speculative by nature, after all, and thus are inappropriate for many portfolios. (See also Glamour Stocks and Growth Stocks.)