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Diversification
Term | Definition |
---|---|
Bear Market | a market with generally stagnant or falling stock prices |
Bonds | interest-earning loans to the government, corporations, or municipalities |
Bull Market | a market with generally rising stock prices |
Diversification | owning a collection of investments in order to spread risk and have a safer overall investment |
Financial Planner | an investment advisor who can help you define and reach your financial goals |
Investment Portfolio | the collection of investments you personally hold, including stocks, bonds, money market accounts, and savings accounts |
Large-Cap Stock | stocks of very large companies that have a market capitalization of between $10 billion and $200 billion |
Small-Cap Stock | stocks of largely unknown companies that have a market capitalization of between $300 million and $2 billion |