Definition, Meaning & Synonyms

stock-allocation

Noun

/stɒk ˌæl.əˈkeɪ.ʃən/

Definition

The process of deciding how much of a portfolio should be allocated to various stocks or groups of stocks.

Examples

Effective stock-allocation strategies can help maximize investment returns.
Investors often revisit their stock-allocation plans based on market conditions.
A balanced stock-allocation includes both growth and value stocks.

Meaning

Stock allocation involves determining the proportion of total investment funds that will be directed towards different stock investments, aimed at diversifying risk and optimizing returns.