pure play

Pure Play

A company devoted to one line of business, or a company whose stock price is highly correlated with the fortunes of a specific investing theme or strategy.

Notes:

For example, a startup R&D company developing a new technology would be considered pure play because its success depends upon a single product.

Coca Cola would also be considered a pure play in the beverage business. Whereas Pepsi wouldn't be pure play, because it has activities in the food business.

See also: Stock

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Pure play

A company involved in only one line of business.

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pure play

An investment that is concentrated in a particular industry or operation. An investor who believes that snowmobiles are the wave of the future will search for a pure play in snowmobiles. In other words, the investor seeks out a company that does nothing other than manufacture and sell snowmobiles. Likewise, Maytag Corporation is more of a pure play in household appliances than is General Electric, even though General Electric has a larger share of the appliance market than Maytag. Reason: General Electric generates much of its revenues from its other operations.