Define: Universe Of Securities

UK Accounting Glossary

Definition: Universe Of Securities


Quick Summary of Universe Of Securities


A set of securities that shares a common feature such as the same market capitalization, industry or index. Universe of securities can also refer to securities within a defined price range, securities that deal in specific commodities and/or securities with the same product line.



Advertisement



Full Definition of Universe Of Securities


The universe of securities refers to a group of stocks that all exhibit a common characteristic or group of characteristics. A universe of securities can represent stocks of a particular market capitalization, industry, or sector. Another criterion that can be used to define a universe of securities is a similar line of products. A portfolio manager may consider a particular universe of securities as their investment mandate. For example, a portfolio manager of a US large-cap fund would only consider a universe of securities that included domestic firms that meet the minimum capitalization requirements of what the Fund deems to be a large-cap. Many mutual funds limit themselves to a particular universe of securities and are often named after that universe of securities. The term style drift refers to an investment manager that has strayed from their mandated universe of securities. Often, when a technical analyst is backtesting a strategy they will limit the test to a specific universe of securities.


Advertisement




Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/universe-of-securities/
Modern Language Association (MLA):
Universe Of Securities. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. March 31, 2020 https://payrollheaven.com/define/universe-of-securities/.
Chicago Manual of Style (CMS):
Universe Of Securities. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/universe-of-securities/ (accessed: March 31, 2020).
American Psychological Association (APA):
Universe Of Securities. PayrollHeaven.com. Retrieved March 31, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/universe-of-securities/

Definition Sources


Definitions for Universe Of Securities are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 5th February 2020.