Diversification A diversified portfolio contains investments in a variety of assets such as stocks, bonds, and real estate to reduce exposure to risk. A diversified stock portfolio contains equities (usually 20 or more different stocks) which are spread among various geographies and sectors (banking, consumer products, technology, etc.).
Dividend A payment from a company's profits in the form of cash or stock to each shareholder. Dividend rates are established by a company's board of directors. Unit trusts also declare dividends, returning profits to shareholders in the form of cash or additional units of the fund.
Dollar Cost Averaging An investment strategy making use of regular investment amounts over time with the objective of providing the investor with an average stock cost that is lower than the current stock price. This strategy is effective for eliminating concerns of timing the market.
Search:
