Overweight (stock market)

Within the stock market, the term overweight can be used in two different contexts.[1]

  1. A rating of a stock by a financial analyst as having better value for money than other stocks. The other possible ratings are "underweight" and "equal weight", to indicate a particular stock's attractiveness.[2]
  2. A judgement of an investment portfolio that it holds proportionately more than the benchmark weight of a certain asset (a share, bond, industry/sector, country, currency, or asset class, etc.).
  1. ^ "Definition of Overweight". Investopedia. Retrieved 4 January 2013.
  2. ^ Updegrave, Walter (2003-08-19). "Glossary please! What do terms like "overweight" and "underweight" mean, anyway?". CNNMoney.com, Ask the Expert. Retrieved 2007-01-03.