Overweight

Increasing the weight of a share, sector or type of investment in a portfolio

Market participants speak of overweighting when buying or selling a particular type of investment (e.g. shares, bonds and warrants), a region or sector, ultimately changing the weighting of their depot. This weighting is usually stated in percent. The additional purchase of securities lends the respective type a stronger weight in the portfolio.

Analysts often use these terms to express their recommendations to either buy (overweight) or sell (underweight) shares.