A technique used by traders and investors to reduce risk of loss. It is done by allocating investments across many different industries, companies, or even financial institutions. It simply indicates a wide variety of investments within a portfolio, thus ensuring if one fails, the entire portfolio won’t also fail.
Diversification
Market Terms
We don't know everything about the markets. We're just devoted to learning. Taken from those smarter than ourselves, here's how we define Diversification.