Asset Allocation
Asset allocation is a strategy where an investor determines how to distribute their investments across different asset classes, such as stocks, bonds, and real estate, based on their risk tolerance, financial goals, and time horizon. The goal is to balance risk and reward by diversifying investments, helping to maximize returns while minimizing potential risks. This strategy allows investors to tailor their portfolio to their unique needs and preferences, aiming for optimal growth while managing volatility. Proper asset allocation is crucial for long-term financial success.
Related Terms
Accrued Interest
Accrued interest is the interest that accumulates during the current accounting period but remains unpaid...
EBITDA MARGIN
The EBITDA margin is a ratio of Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)...
Forex Futures Trading
Forex futures trading involves buying and selling standardized futures contracts for currency pairs on exchanges...
Call Option
A call option is a derivative contract granting the right, but not the obligation to...
After Market Order (AMO)
After Market Order is an instruction directing a broker to place the order at the...
Follow On Public Offer
A Follow-On Public Offer (FPO) enables a publicly traded company to issue additional shares to...
