Market Exposure


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Market Exposure

1. The amount of money one risks in an investment. For example, if one invests $10,000 in a stock, one accepts a market exposure of $10,000. One also may speak of being exposed to particular type of risk. For example, if one invests in a bond, one is exposed to the risk that inflation will outpace the yield on the bond.

2. The proportion of a portfolio or fund invested in a single company or industry. For example, if 50% of one's portfolio consists of financial stocks, one has a 50% market exposure. Most investors seek diversification so as to avoid "over-exposure" in any one industry. See also: Markowitz Portfolio Theory.
References in periodicals archive ?
A In our experience the best measures of a good estate agent are the amount of market exposure they provide, their guarantees and customer care program, and their charges.
Prudent investors will have to pick their market exposure more carefully than ever.
will gain more market exposure here following acquisition of that firm by Quintax Inc.
By allowing all types of buyers and sellers to connect online, sellers will broaden their market exposure and the governments' collective buying power will translate into lower costs and a wider range of choices.
Realtors say joining the system will give local homes far greater market exposure and at the same time give residents interested in buying homes elsewhere the ability to shop in other communities from their local real estate office.
In addition to the economies of scale' involved in a multi-seller program, auctions typically define true market value, create a temporary seller's market, obtain huge market exposure, assure a firm closing and allow buyers to bid with confidence.
It gives fund managers critical control over market exposure by allowing them to maintain the desired cash levels at all times.
Chairman of the Board, Albert Finch, said, "We are very excited with this change, the NASDAQ Global Market will provide the Company much wider market exposure and greater prestige from an investor perception standpoint, which should lead to stronger liquidity for our stock.
Berry will greatly assist Dejour to maximize market exposure as Company energy strategies continue to evolve.
Conference attendees will include principals of National Investment Banking Association's NASD member firms engaged in small business capital formation, principals of various capital market service providers and the management of varied companies seeking capital or market exposure.
The market neutral strategy is designed to maintain approximately equal dollar amounts invested in long and short positions and seeks to eliminate market exposure, or beta2.
Figure 4: Europe's key players: Wholesale gas market exposure