Diversification is a strategy that involves spreading investments across different assets, sectors, or categories to reduce the impact of potential losses. For example, you may diversify your portfolio by investing in stocks, bonds and real estate across different industries and geographies to mitigate risk. Moreover, you can diversify your investment in just mutual funds by …
Post Type Archives: Glossary
Divestment
Divestment or divesting is the opposite of investment. It refers to the process of selling assets, divisions, or investments in a company to maximise the parent company’s value. Generally, a company proceeds with divestment when a division or asset of a subsidiary is not performing as expected. This process helps streamline the operations of a …
Dividend
If you are a new investor in the stock market, you must be wondering what is a dividend. Simply put, it is the portion of profits and earnings the company disburses to its shareholders. You get these earnings when a company generates a profit and decides to pay the shareholders rather than retain it. The …