Concentrated stock

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Concentrated stock is an equity making up a substantial part (usually, more than 30%) of the investor's portfolio. The major risk associated with such a portfolio is a lack of diversification; concentrated stock makes a large portion of the investor's wealth dependent on the performance of one particular stock. The reasons for keeping a concentrated stock may be restrictions for sale (see restricted stock), emotional attachment, donation, inheritance, stock options, and the selling of businesses.

v t e Financial markets

Types of stocks	Common stock Golden share Preferred stock Restricted stock Tracking stock

Share capital	Authorised capital Issued shares Shares outstanding Treasury stock

Participants	Broker-dealer Floor broker Floor trader Investor Market maker Proprietary trader Quantitative analyst Stock trader Regulator

Exchanges	Electronic communication network Stock exchange opening times Over-the-counter List of stock exchanges Multilateral trading facility

Stock valuation	Alpha Arbitrage pricing theory Beta Book value Capital asset pricing model Dividend yield Earnings per share Earnings yield Dividend discount model Security characteristic line Security market line T-model

Trading theories and strategies	Algorithmic trading Buy and hold Concentrated stock Contrarian investing Day trading Dollar cost averaging Efficient-market hypothesis Fundamental analysis Growth stock Market timing Modern portfolio theory Momentum investing Mosaic theory Pairs trade Post-modern portfolio theory Random walk hypothesis Style investing Swing trading Technical analysis Trend following Value investing

Related terms	Block trade Cross listing Dark liquidity Dividend Dual-listed company DuPont analysis Flight-to-quality Haircut Initial public offering Margin Market anomaly Market capitalization Market depth Market manipulation Market trend Mean reversion Momentum Open outcry Public float Public offering Rally Reverse stock split Returns-based style analysis Share repurchase Short selling Slippage Speculation Stock dilution Stock market index Stock split Trade Uptick rule Volatility Voting interest Yield

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Concentrated stock

See also