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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 (such as stocks from different industries, stocks from both small and large companies, bonds, and money market funds) 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, such as Walmart, General Electric, and IBM, that have a market capitalization of between $10 billion and $200 billion. |
| Small-Cap Stock | Stocks of largely unknown companies with smaller market capitalization, or dollar value of total stock ownership. Small-cap stocks generally have a market capitalization between $300 million and $2 billion. |