Overweight and underweight
The terms overweight and underweight are used by brokers and fund managers to indicate their preference for stocks or markets relative to particular indices or benchmarks.
The terms overweight and underweight are used by brokers and fund managers to indicate their preference for stocks or markets relative to particular indices or benchmarks.
If, for example, a fund manage who uses the FTSE 100 as a benchmark says he is overweight BT, he means that he holds a greater percentage of BT shares in his portfolio than BT's weighting in the FTSE 100. If he is underweight he means the opposite.
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