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Plain-language reference

The Investing Dictionary

Clear, cross-linked explanations of the terms you meet while learning to invest. Start with a word, not a recommendation.

  • A
  • Asset Allocation

    Asset allocation is the decision about how much of a portfolio belongs in broad investment categories.

  • D
  • Diversification

    Diversification spreads exposure across investments so one disappointment has less power over the whole portfolio.

  • P
  • Portfolio

    A portfolio is the complete collection of investments held by a person or institution.

  • R
  • Risk and Return

    Return is an investment's gain or loss; risk is uncertainty about outcomes and the possibility of losing money.