Stockmarket Jargon

T

Trebledigit

Registered User
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Can anyone throw some light on the following stockbroker jargon and what each term means in the hierarchy of broker advice:

Buy
add
overweight
hold
neutral
underweight
sell

and any others that go to make up the set.

Some of them may look obvious but I understand, for example, that overweight may mean buy more and I'm not sure what the difference between 'buy' and 'add' is.
 
Other than a straight " buy " or straight " sell " there are variations of these recommendations .Treat recommendations by brokers with a healthy scepticism imo. I have never heard a broker recommend " avoid like the plague" for a stock ! When the Nasdaq 100 reached it's peak of around 5000 in March 2000 there was hardly a sell rating on any stock and many of those very same stocks already had mind numbing valuations ! Buy ratings are as common as muck. If you are going to invest in the stock market yourself you should also be doing your own research , and then look for the reasons behind a particular rating by a broker. At the end of the day you have to give consideration to the fact that the salaries of the analysts are ,to some extent, derived from the companies they are reviewing - the financial industry got bad press about this in 2001.
 
Thanks for that advice. I checked the two websites above and got some guidance (some of it contradictory in relation to overweight/underweight). The bottom line seems to be that you don't pay any attention whatsoever to brokers ratings.
 
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