What do we mean by 'overweight', market weight and underweight in financial markets?

Every sell side firm on the street has their own language to buy, sell, or hold a stock. These are just fancy ways of saying the same. Market Weight = hold; underweight = sell; overweight = buy.

Overweight means that the stock is not quite a buy, but not a hold. Underweight is the opposite...not yet a sell, but still worth a hold

Overweight refers to how your portfolio is balanced. If had $10,000 and you invested $1,000 in each of 8 different companies then invested the last $2,000 in Google. You would be overweighted in Google. This also applies to sectors. You can be overweighted in Tech. and underweighted Consumer Goods. Being Overweight in one stock or sector can be seen as taking on extra risk.

Lots of people were Overweighted on Tech stocks in the years leading up to 2000, Then saw huge loses in the 3 yr bear market that proceeded

Analyst will also us this term when recommending stocks.

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