Definition of «equity exposure»

Equity exposure refers to an investor's or a company's holding in equities, which are shares representing ownership in a publicly traded company. It is the extent to which an individual or institution has invested their money into stocks of different companies. The level of equity exposure can vary depending on factors such as risk tolerance and investment goals. A higher degree of equity exposure may result in greater potential returns, but also carries a higher level of risk. On the other hand, lower equity exposure may reduce risk, but could also limit potential returns.

Sentences with «equity exposure»

  • This way you can get a large amount of equity exposure without having to put up all the cash. (financialsamurai.com)
  • The blue line represents all accounts split 60/40, the orange line represents a higher allocation of bonds into the 401 (k) account, with higher equity exposure in taxable account. (HyllandCapital.com)
  • However, volatility targeting tends to reduce equity exposure after a sharp market drop, which means the portfolio may miss the early part of the market recovery. (portfoliovisualizer.com)
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