Diversification

Diversification

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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
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.

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