The situation in which investors favor a group of securities over other, similar groups of securities. This results in the price of the first group being higher than all other groups, sometimes significantly so. This may occur for a number of reasons: for examples investors may expect future earnings on the first group to be higher. Alternatively, the first group may simply employ better marketing tactics. The specific securities in different tiers change as investors' expectations change. The term should not be confused with "two-tier market."
A securities market in which investors favor certain groups or types of stock, with the result that the favored securities sell at higher price-earnings ratios than do other securities with similar characteristics. Favored groups tend to rotate as investors' interests and perceptions change.