Diversification means not putting all your eggs in one basket. In investment terms spreading your portfolio out across multiple investments helps insulate you against specific risks in a way that…

A sector is part of the economy, or group of business, that operates in a similar fashion. Some examples include Finance, Energy, Technology, and Manufacturing. Investments are often grouped by sector…

Asset Allocation is the mix of investments you own. Your “portfolio” of investments and the specific proportion allocated to different investments should be appropriate to your investing goals. Each investment account…

An exchange traded fund (ETF) is similar to a mutual fund. It is a professionally managed investment fund that invests in stocks, bonds, etc. Unlike mutual funds, exchange traded funds are traded…

A mutual fund is a professionally managed investment fund that invest in stocks, bonds, etc. Investors buy and sell shares in the funds directly.

Bonds are loans from investors to companies, municipalities, etc. paid back over time with interest. Commonly referred to as “fixed income” since most earn a fixed rate of return.

Stocks  are shares held in a single public company, signifying a portion of ownership in that company.

A security is broadly defined as a financial instrument that holds value and can be traded between parties. Common securities include stocks, bonds, mutual funds, exchange-traded funds or other types…