Finance

Stock Selection Criterion

Stock Selection Criterion

Stock selection criterion are options for selecting a share for investment. The stock investment decision or position might be “long” or “short”, depending on the investor’s expectation of the way the stock price could move. The stock selection criterion can include systematic stock selecting methods that utilize software and/or data. The objective of stock selection criteria should be to: maximize the total return for the specific holding period, limit risk and keep an appropriate level of portfolio diversification.