Concentrated stock is an equity making up a substantial part (usually, more than 30%) of the investor's portfolio. The major risk associated with such a portfolio is a lack of diversification; concentrated stock makes a large portion of the investor's wealth dependent on the performance of one particular stock. The reasons for keeping a concentrated stock may be restrictions for sale (see restricted stock), emotional attachment, donation, inheritance, stock options, and the selling of businesses.

[edit] See also

• Public float
• Free float
• Market capitalization
• Restricted stock
• Shares authorized
• Treasury stock

v • d • e Stock market Types of stocks Stock · Common stock · Preferred stock · Outstanding stock · Treasury stock · Authorised stock · Restricted stock · Concentrated stock · Golden share Participants Investor · Stock trader/investor · Market maker · Floor trader · Floor broker · Broker-dealer Exchanges Stock exchange · List of stock exchanges · Over-the-counter · Electronic Communication Network Stock valuation Gordon model · Dividend yield · Earnings per share · Book value · Earnings yield · Beta · Alpha · CAPM · Arbitrage pricing theory Financial ratios P/CF ratio · P/E · PEG · Price/sales ratio · P/B ratio · D/E ratio · Dividend payout ratio · Dividend cover · SGR · ROIC · ROCE · ROE · ROA · EV/EBITDA · RSI · Sharpe ratio · Treynor ratio · Cap rate Trading theories and strategies Efficient-market hypothesis · Fundamental analysis · Technical analysis · Modern portfolio theory · Post-modern portfolio theory · Mosaic theory · Pairs trade Related terms Dividend · Stock split · Reverse stock split · Growth stock · Speculation · Trade · IPO · Market trend · Short Selling · Momentum · Day trading · DuPont Model · Dark liquidity · Market depth · Margin · Rally · Volatility

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