Saturday, January 8, 2011

Approved List

An Approved List is a list of securities put together by a fund or brokerage firm's research team, which will assess a much wider universe of securities against a set of criteria e.g. minimum liquidity levels, minimum quality or size levels, etc. The list is designed to do most of the heavy lifting in the security selection process. In practice portfolio managers, in the case of funds will select securities from this list to build the portfolio; while brokers will select stocks from the list to suit their client's individual needs in building a client portfolio.

Synonyms: Approved securities, Approved list model

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