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The Difference Between Investing and Trading

Investing and trading are two different types of stock market strategies. Generally, the investor seeks to create slow and steady returns through investing in companies’ business plans and balance sheets. The trader, on the other hand, seeks to make risky short-term plays in market equities, often entering and exiting a stock position in seconds. Both […]

A General Overview of Investment Types

There are many different investments that you can make. The most common types are small- company stocks, large-company stocks, government bonds, and real-estate properties. Each type has its benefits and tradeoffs, and in this lesson, we will cover the most basic information for each investment. Small-Company and Large-Company Stocks A stock is a small share […]

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The Importance of Portfolio Diversification

Diversification is one of the most basic but important tools used to manage risk within a portfolio. Before we jump into why diversification is so important, let us first define the term. What is diversification? Diversification in a portfolio is when an investor buys assets of all different types. A well-diversified portfolio will have different […]