Overweight (stock market) 3493586 154688319 2007-08-30T22:17:46Z Tekhnofiend 587061 corrected examples so that overweight -> increase investment and underweight -> decrease investment '''Overweight''' is part of a three-tiered rating system, along with "underweight" and "equal weight", used by [[stock]] [[analyst]]s to indicate a particular stock's attractiveness. If a stock is deemed "overweight" the analyst is saying, in his opinion, the stock is a better value relative to other stocks he covers in the same sector.<ref>{{cite news |first=Walter |last=Updegrave |title=Glossary please! What do terms like "overweight" and "underweight" mean, anyway? |url=http://money.cnn.com/2003/08/19/pf/expert/ask_expert/ |work=[[CNN.com|CNNMoney.com]], Ask the Expert |date=[[2003-08-19]] |accessdate=2007-01-03}}</ref> ==Examples== '''Overweight portfolio''' — if you have 10% of your stocks in Retail, 25% in Manufacturing, 50% in High-Tech, and 15% in Defense, and your broker tells you that High-Tech is "overweight", then your broker is implying that a larger percentage of your stocks should be in High-Tech. This is an example of an "overweight" portfolio, where the investor is being advised to increase their investments in Hi-Tech. '''Underweight portfolio''' — if you have 10% of your stocks in Retail, 25% in Manufacturing, 50% in High-Tech, and 15% in Defense, and your broker tells you that Retail is "underweight", then your broker is implying that a smaller percentage of your stocks should be in Retail. This is an example of an "underweight" portfolio, where the investor is being advised to decrease their investments in Retail. ==References== <references/> ==External links== *[http://money.cnn.com CNNMoney.com] *[http://money.cnn.com/pf/expert/ CNN Ask an Expert] [[Category:Stock market]]