Investing Fundamentals and Diversification
Investing Fundamentals · 18 min
Lesson
In progress
Investing means putting money to work with the expectation of growth over time, accepting some risk of loss along the way.
Diversification — spreading money across many companies or bonds instead of one — reduces the impact of any single investment doing poorly.
This is general education, not personalized financial advice; consider your own goals, timeline and risk tolerance, and speak with a licensed professional for advice specific to you.
Key takeaways
- Investing accepts risk in exchange for potential growth.
- Diversification spreads risk across many holdings.
- This is education, not personalized investment advice.
Glossary
- Diversification
- Spreading money across many investments to reduce the impact of any one performing poorly.
- Compounding
- Earning returns on both your original investment and prior returns.