Stock Terms: What Is The 28 Phenomenon?

The 28 law is also called. Pareto's law It was invented by Pareto, an economist in Italy in the late nineteenth Century and early twentieth Century. He believes that in any group of things, the most important part is only a small part, about 20%, while the remaining 80% are majority, but they are secondary, so they are also called the 28 rule. 　　
　　

Pareto found from a large number of concrete facts that 20% of the society possessed 80% of the social wealth, that is, the distribution of wealth in the population is unbalanced. At the same time, people find that there are many unbalanced phenomena in life. Therefore, the 28 law has become the abbreviation of this unequal relationship, no matter whether the result is exactly 80% and 20% (statistically speaking, the exact 80% and 20% are unlikely to happen). Traditionally, the 28 law deals with 20% of the top, rather than 20% of the bottom.

Later generations gave different names to Pareto's discovery, such as Pareto's law, Pareto's law, 80/20's law, the most laborsaving law, the principle of imbalance. These names are collectively referred to as the 28 law. The 28 law adopted today is a quantitative empirical method to measure the possible relationship between input and output.

The most popular saying is: "80% of the revenue comes from 20% of the customers." it is also known as the 20/80 rule.

Our country equity market Frequently said 28 phenomenon In fact, 20% of the shares rose, and 80% of the shares fell or did not rise.