Diversification Term category: General Investing In 10 words or less: Spreading one's assets out over many different securities.
Definition: The concept of spreading your money among a number of different investments in order to reduce risk. It's the idea that you shouldn't put all of your eggs in one basket.
StockJargon Advice: Diversification is a good way to reduce your risk and exposure to the market. Every good portfolio should be diversified. The level of diversification is up to you, though.
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