You're here:  Home --> Dictionary --> D --> Diversification

A Few Related Terms

Concentration
Portfolio
Asset Allocation
Mutual Fund

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.

Related Articles


Diversification vs. Concentration
The argument looms about whether a diversified portfolio is really better than a concentrated one. This article discusses the topic.

Dollar Cost Averaging
This article shows you an alternative to putting all your money into a stock at one time...

Five Common Investment Mistakes
Here are a few common mistakes that a lot of new investors make when they're first starting out...

Related Books

Wall Street Journal Guide to Understanding Money and Investments by Kenneth M. Morris
Investing for Dummies by Eric Tyson
Automatic Millionaire by David Bach
One Up on Wall Street by Peter Lynch

# -A - B - C - D - E - F - G - H - I - J - K - L - M - N - O - P - Q - R - S - T - U - V - W - X - Y - Z