Financial Terms Glossary

The most important financial terms - with simple and concise explanations.

Diversification

Diversification means spreading your risk when investing money. As the saying goes: don’t put all your eggs in one basket. As a practical example, this might mean selecting assets across different asset classes and/or regions to mitigate overall portfolio risk. The result is that the loss of one investment can be, at least partially, offset by the gain of another.

Financial terms from A-Z

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