A-Z Popular Blog Encyclopedia Search »
Investing
 Advertisements
Related Guides
Behavioral Finance

4 Types of Concept Company

 , updated on
A concept company is a firm that attracts a high valuation based on excitement for its business model as opposed to fundamentals such as revenue, net profits, growth and book value. Concept companies may go through a dramatic boom and bust cycle. The following are common types of concept company.

Technology

Concept companies are often the leader in a technology that is widely covered by the media with wild predictions for its future potential.

Charismatic Leaders

Firms led by executives who say exciting things and aggressively take on risk. For example, they might make big acquisitions and often seek to raise more capital.

Industry

Firms in a young industry or that have a new type of business model.

Local Champions

Concept companies that benefit from a home bias whereby locals see the firms valuation as reasonable but people in other countries view it as dramatically overvalued.
Overview: Concept Company
Type
Definition
A firm that attracts a high valuation based on excitement for its business model, industry or products.
Related Concepts
Next: Business Concept

Behavioral Finance

This is the complete list of articles we have written about behavioral finance.
Animal Spirits
Bubbles
Bull Trap
Capitulation
Dumb Money
Falling Knife
Freeriding
Greed Is Good
Home Bias
Long Squeeze
Mr Market
Noise Traders
Sell On News
Speculation
If you enjoyed this page, please consider bookmarking Simplicable.
 

Behavioral Finance

A list of the core ideas of behavioral finance.

Falling Knife

A definition of falling knife.

Fear Of Missing Out

An overview of fear of missing out.

Greater Fool Theory

An overview of greater fool theory.

Sell On News

An overview of sell on news.

Bull Trap

An overview of bull trap, an investing term.

Information Cascade

A definition of information cascade with examples.

Long Squeeze

The common types of long squeeze.

Freeriding

The definition of freeriding with examples.

Herd Behavior

The definition of herd behavior with examples.

Alpha vs Beta

The difference between two common investment measurements.

Regression Toward The Mean

An overview of Regression Toward The Mean.

Efficient Market Hypothesis

An overview of the Efficient Market Hypothesis.

Animal Spirits

An overview of animal spirits, a theory of investing.

Financial Markets

A definition of financial market with examples.

Mr Market

A definition of Mr. Market, an investing theory.

Organic Growth

A definition of organic growth with examples.

Information Costs

A definition of information costs with examples.

Channel Check

The definition of channel check with examples.
The most popular articles on Simplicable in the past day.

New Articles

Recent posts or updates on Simplicable.
Site Map