what is a concentrated position?
i bought some RIM (BBRY) stocks back in january and have had them ever since, i got an email from the company i do stocks with and it said that my accound holds a concentrated position, i have no clue what that is, i tried googling it but it was all complicated jib jabber, can anyone explain this to me in english, should i be worried? thanks
- TedLv 77 years agoFavorite Answer
It means that your investment value is concentrated in one or a small number of stocks so that one company going bad could hurt you a lot. The opposite of concentrated is diversified which means that investments are spread over a bunch of companies.