Free Newsletter

Stay updated, sign up for our free newsletter to receive useful tips

Full Name
Email Id

sign up

Underweight Stock

As with any industry, the financial world has developed a kind of shorthand or jargon that quickly indicates the opinion of a given analyst or researcher toward a stock or security. Three terms - overweight, underweight, and equal weight - are routinely used to characterize how a stock is performing relative to the other stocks within the same investment sector or genre. The use of such words saves time for financial professionals in their evaluation of stock performance.

Therefore, when a stock analyst, researcher, or stockbroker uses the word "underweight" to describe a stock, he is actually saying that in his opinion that stock is inferior to and a poorer performer in relation to similar investments in the same sector. Obviously, then, an overweight stock is superior and more attractive as an investment. Stocks said to be "equal weight" are more or less neutral or average, neither better nor worse than the majority of stocks in the sector.

More Glossary Terms Explained here


Suggest an Article

Haven´t found the article you are looking for, please suggest your article. We value all your suggestions and comments

submit
Home            Contact Us        Copyrights    Privacy Policy    Disclaimer
©Copyright 2008 ilikeinvesting.com All Rights Reserved. Read legal policy and privacy policy.