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Emerging Industry

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Emerging Industry
An industry producing one or more products without an established market or customer base. Companies in emerging industries often spend a great deal on research and development and nearly always have little to no revenue in their early years. As a result, stocks in emerging industries carry very high risk; however, if a company becomes successful, it can result in large returns. For example, most dot-com companies had little or no revenue in their early years, and, indeed, most went bankrupt. However, a few, such as Google and Amazon, became prominent and profitable for their shareholders. See also: Industry Life Cycle.


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