The objective of stock selection criteria is to: (1) maximize the total return on investment (appreciation plus any dividends received) for the targeted holding period (2) limit risk (according to an individual's risks tolerance levels) (3) maintain an appropriate degrees of portfolio diversification.
Stock selection criteria are methods for selecting a stock(s) for investment. The stock investment or position can be "long" (to benefit from a stock price increase) or "short" (to benefit from a decrease in a stock's price), depending on the investor's expectation of how the stock price is going to move. The stock selection criteria may include systematic stock picking methods that utilize computer software and/or data.
Showing posts with label Stocks. Show all posts
Showing posts with label Stocks. Show all posts
Tuesday, March 2, 2010
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