A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- Asset AllocationHow you split your money among stocks, bonds, and cash — the biggest driver of risk and growth.
- DiversificationSpreading your money across many different investments so a drop in any single one does less damage.
- RebalancingPeriodically adjusting your investments back to your target mix after market moves push them out of balance.
- Brokerage AccountAn account you open with an investment firm to buy and sell stocks, bonds, funds, and other investments.
- Risk ToleranceHow much investment ups and downs you can handle emotionally and financially without changing your plan.
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Plain-English education — not personalized legal, tax, or investment advice.