Rebalancing


Rebalancing
The process of realigning the weightings of one's portfolio of assets. Rebalancing involves periodically buying or selling assets in your portfolio to maintain your original desired level of asset allocation.

For example, say your original target asset allocation was 50% stocks and 50% bonds. If your stocks performed well during the period, it could have increased the stock weighting of your portfolio to 70%. You may then decide to sell some of your stocks and buy bonds to get it back to your original target allocation of 50/50.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Rebalancing — steht für: ein Begriff aus der modernen Portfoliotheorie von Wirtschaftsnobelpreisträger Harry Max Markowitz, siehe Rebalancing (Finanztheorie) eine alternativen Form der Körpertherapie, siehe Rebalancing (Therapie) Diese Seite ist eine… …   Deutsch Wikipedia

  • rebalancing — noun The act or process of restoring balance …   Wiktionary

  • Rebalancing — Realigning the proportions of assets in a portfolio as needed. The New York Times Financial Glossary …   Financial and business terms

  • rebalancing — Realigning the proportions of assets in a portfolio as needed. Bloomberg Financial Dictionary …   Financial and business terms

  • rebalancing — 1) The adjustment of a hedge in order to improve its effectiveness as circumstances change. 2) The adjustment of a portfolio over time to better reflect its underlying strategy. For example, a market tracking hedge will require changes over time… …   Big dictionary of business and management

  • Rebalancing (investment) — Rebalancing is the action of bringing a portfolio of investments that has deviated away from one s target asset allocation back into line. Under weighted securities can be purchased with newly saved money; alternatively, over weighted securities… …   Wikipedia

  • Rebalancing (Therapie) — Rebalancing (wieder ausgleichen) ist eine Form von Körpertherapie, die in den 1970er Jahren hauptsächlich im Ashram von Osho (Bhagwan Shree Rajneesh) in Pune aus Elementen anderer Körpertherapiemethoden, Meditationstechniken und… …   Deutsch Wikipedia

  • Rebalancing investments — The rebalancing of investments is the action of bringing a portfolio that has deviated away from one s target asset allocation back into line. Under weighted securities can be purchased with newly saved money; alternatively, over weighted… …   Wikipedia

  • portfolio rebalancing — kolektyvinio investavimo subjekto portfelio perbalansavimas statusas Aprobuotas sritis kolektyvinio investavimo subjektų veikla apibrėžtis Reikšmingas kolektyvinio investavimo subjekto portfelio sudėties pakeitimas. atitikmenys: angl. portfolio… …   Lithuanian dictionary (lietuvių žodynas)

  • Leverage rebalancing — Making transactions to adjust (rebalance) a firm s leverage ratio back to its target. The New York Times Financial Glossary …   Financial and business terms


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