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diversification

A portfolio strategy designed to reduce exposure to risk by combining a variety of investments, such as stocks, bonds, and real estate, which are unlikely to all move in the same direction. The goal of diversification is to reduce the risk in a portfolio. Volatility is limited by the fact that not all asset classes or industries or individual companies move up and down in value at the same time or at the same rate. Diversification reduces both the upside and downside potential and allows for more consistent performance under a wide range of economic conditions.

Related information about diversification:
  1. Diversification (finance) - Wikipedia, the free encyclopedia
    In finance, diversification means reducing risk by investing in a variety of assets. If the asset values do not move up and down in perfect synchrony, a diversified ...
     
  2. Diversification - Wikipedia, the free encyclopedia
    Diversification may refer to: Look up diversification in Wiktionary, the free dictionary. Diversification (finance) involves spreading investments; Diversification ...
     
  3. Diversification (marketing strategy) - Wikipedia, the free encyclopedia
    Diversification is a form of corporate strategy for a company. It seeks to increase profitability through greater sales volume obtained from new products and new ...
     
  4. Diversification Definition | Investopedia
    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique contends that a portfolio of different ...
     
  5. diversification - The Free Dictionary
    di·ver·si·fy (d -vûr s -f , d -). v. di·ver·si·fied, di·ver·si·fy·ing, di·ver·si·fies. v.tr. 1. a. To give variety to; vary: diversify a menu. b. To extend (business activities) into ...
     
  6. Diversification | Define Diversification at Dictionary.com
    Diversification definition, the act or process of diversifying state of being diversified See more.
     
  7. What is diversification? definition and meaning
    Definition of diversification: A portfolio strategy designed to reduce exposure to risk by combining a variety of investments, such as stocks, bonds, and real estate, ...
     
  8. Diversification
    Successful investing means not only capturing the risks that generate expected return, but reducing risks that do not.