Stock exchange Profile

The stock exchange profile is a concept of behavioral Finance which translates, according to the cases:

  • mode of behavior of the courses of an action (or of another marketable quoted security),
  • or style of stock exchange decisions of an investor.

Stock exchange profile of an action

Criteria

The profile of a quoted on the stock exchange action translates its notoriety and especially the mode of behavior of its courses.

Two great criteria for " profiler" an action, in other words to determine with which type of stock exchange behavior it is attached, are:

  • the level of the courses compared to the theoretical value determined by the financial Analysis) from the fundamental economic ones.
  • the stability (or contrary the Volatility) of the courses compared to the stock exchange Tendency general.

Classes of shares (standard profiles)

The actions are often classified by the managers of wallet in function, in particular of:
  • them Market cap: small companies at narrow stockmarket, known as " small caps" , or great groups at broad market known as " big caps" ,
  • their profit characteristics: Action of growth, Action with output, defensive Action, cyclic Action, Actions in rectification…
  • the private interest which the market carries: actions (or sectors) currently forsaken (depreciated Action known as also " of valeur"), or on the contrary sails about it and tending to being overestimated,
  • etc

Stock exchange profile of an investor

The stock exchange profile of an investor translates the style of management of sound Portefeuille. This style will depend on its personal situation (old, occupation, financial means, family circumstances, tax situation…) but also of its psychology, in particular of its preferences as regards arbitration risk vs. Output.

That led to types of different choices of investment according to the individuals:

  • long-term placement (slow rotation of the wallet) or purchase-resale short-term (trading),
  • speculative actions in the short run, or of " father of famille" in the long run,
  • strong concentration or strong diversification (by actions, sectors, country, types of financial credits,
  • following or " contrarian" ,
  • follower of the technical Analysis or the fundamental Analysis
  • etc etc
There is normally a certain adequacy between types of profiles of actions and types of profiles of investors. Each Investment trust also adopts a profile of management to him corresponding to a precise segment of customers of savers, so that the financial institutions propose with their customers, a very diversified pallet of funds

See too

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