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 (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
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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