Market Exposure

The amount of funds invested in a particular type of security and/or market sector or industry and usually expressed as a percentage of total portfolio holdings. Thus, it is the amount an investor has at risk or the amount he/she can lose. Also known as "exposure".

The exposure of a portfolio to particular securities/markets/sectors must be considered when determining asset allocation since it can greatly increase returns or, if properly done, minimizes losses. For example, a portfolio with both stocks and bonds holdings will typically have less risk than a portfolio with exposure only to stocks.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Market exposure — (or exposure) is a financial term which measures the proportion of money invested in the same industry sector. For example, a stock portfolio with a total worth of $500,000, with $100,000 in semiconductor industry stocks, would have a 20%… …   Wikipedia

  • Exposure — can refer toIn biology: * A condition of very poor health or death resulting from lack of protection over prolonged periods under weather, extreme temperatures or dangerous substances ( see also: hypothermia, hyperthermia, radioactive… …   Wikipedia

  • Exposure — Das englische Wort exposure (dtsch. Ausgesetztsein) ist im deutschsprachigen Kontext benutzt ein in der Finanzwirtschaft gebräuchlicher Begriff zur Beschreibung eines Engagements, d.h. des Risikos, bzw. der Chancen eines Kursverlusts oder gewinns …   Deutsch Wikipedia

  • exposure — ex·po·sure n 1: the fact or condition of being exposed; also: the possibility of loss caused by an outside source used in insurance 2: the act or an instance of exposing 3: something that exposes someone or something; esp: something (as a… …   Law dictionary

  • Market value — For values of entire markets, see Market size. Market value is the price at which an asset would trade in a competitive auction setting. Market value is often used interchangeably with open market value, fair value or fair market value, although… …   Wikipedia

  • exposure — The vulnerability that is attached with an investment. There are different types of exposures that an investment may have, such as, currency exposure or economic exposure. For example, currency exposure is the proportion of your share portfolio… …   Financial and business terms

  • exposure — /ɪk spəυʒə/ noun the amount of risk which a lender or investor runs ● He is trying to limit his exposure in the property market. COMMENT: Exposure can be the amount of money lent to a customer (a bank’s exposure to a foreign country) or the… …   Dictionary of banking and finance

  • exposure — noun Date: 1605 1. the fact or condition of being exposed: as a. the condition of being presented to view or made known < a politician seeks a lot of exposure > b. the condition of being unprotected especially from severe weather < died of… …   New Collegiate Dictionary

  • Market neutral — An investment strategy or portfolio is considered market neutral if it seeks to entirely avoid some form of market risk, typically by hedging. In order to evaluate market neutrality, it is first necessary to specify the risk being avoided. For… …   Wikipedia

  • Market risk — Categories of financial risk Credit risk Concentration risk Market risk Interest rate risk Currency risk Equity risk Commodity risk Liquidity risk Refinancing risk …   Wikipedia

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