Diversification is the age-old strategy of owning securities with different risk attributes to mitigate total risk in a portfolio.
The opposite of diversification is creating a highly concentrated investment portfolio, where the investor may only own a handful of stocks or just one or two stocks. The potential reward/risk of loss is much higher than a portfolio with securities diversified across a sector, style, and region.
It has been proven that time and again an investor can give themselves the best chance of achieving solid risk-adjusted returns with a diversified portfolio.
Short selling is done with the help of a brokerage/custodian, who will lend you the security so that you can sell it
A resistance line is the glass ceiling through which a security price has trouble breaking in technical analysis
Active management is the practice of attempting to outperform the market with selection and timing
The Accounts Payable Subsidiary Ledger will contain all of the transaction details for each credit and debit in a period
If a bank forecloses on a home, and it does not sell at auction, it becomes bank-owned-property (or real estate owned)
Run rate is an estimation of a future annual outlay or annual performance based on the most current numbers
An investment center is an almost autonomous division of a company whose purpose is to generate returns on invested money
The Inverted Cup-and-Handle pattern forms when prices rise then decline to create an upside-down “U”like shape
Growth mutual funds invest in companies that are developing and/or have a high potential for growth, as the name implies
You may wish to construct your own asset allocation, but there are asset allocation programs available which can take...