second-tier stock

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Second-Tier Stock

A stock investors favor less than others. This results in the price of a second-tier stock being lower, sometimes significantly so. This may occur for a number of reasons: for example, the stock may have lower market capitalization. Alternatively, it may simply trade on a less prestigious exchange. The specific stocks in a second-tier change as investors' expectations change. See also: Tiered market, Two-tier market.
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second-tier stock

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
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On the second tier stock index, JD Sports topped the FTSE 250 after reporting record half-year profits, announcing plans to set up shop in Australia, and vowing to press ahead with European expansion despite the Brexit vote.
Fellow second tier stock JD Sports Fashion joined Brit in making advances, up 13% or 97p to 823p, ahead of its interim results, which are expected to confirm a resilient first half from the sportswear retail group.
Fellow second tier stock Carphone Warehouse saw its shares fall nearly 3per cent as internet provider Tiscali revealed its auditors had refused to sign off its accounts.
DSG was also on the slide - down 4.25p to 188.75p - and was joined in the red by struggling second tier stock HMV, which was off 4.5pto 142.25p.
Second tier stock Amec was also in positive territory amid talk of interest from a private equity bidder.
Telecoms firm Spirent was another second tier stock on the front foot.
However, second tier stock Woolworths lost more than 1pc or 0.5p to 36.25p after reporting a fall in same-store sales at the company's core chain amid difficult trading conditions.
Second tier stock Amec was also in positive territory after two investment groups confirmed their interest in a joint takeover.
Top volumes leaders included: UNITY, BOP, TRG, FFL and DOL reflecting investor's interest in second tier stocks. More importantly, banking sector scrips failed to attract investors' attention despite a 100bps interest rate hike by the central bank in its last monetary policy announcement.
Average traded value declined by 9pc to $55m as investors' interest was mainly concentrated in second tier stocks. Lotte Chemical with 100.1m shares, Nimr Resins 55.3m shares, Pak Elektron Ltd 36.5m shares, Fauji Foods Ltd 33.5m shares and Azgard Nine Ltd 31.3m shares were volume leaders for the week.
Trading value on Friday improved to Rs8.105bn, from Rs7.423bn the earlier day, though turnover in terms of shares decreased to 144 million, from 154m, signifying investors' interest mainly in the first and second tier stocks.
Our recommendations on second tier stocks are for experienced long-term investors with high risk tolerance.