What Diversification Is It is rare to find rational investors concentrating their entire wealth in a single security or investment. Instead, they tend to invest in a diversified portfolio of securities. The reason is that pooling imperfectly correlated stocks together helps to diversify away diversifiable (unique or non-systematic) risks. It has been found that risk of a portfolio is less than … Continue reading “Diversification”
T INTRODUCTION Every investor who wishes to transact business in the securities market will need the services of a brokerage firm unless such an investor is a member of an organized exchange or a registered dealer in securities. TYPES OF BROKERAGE FIRMS Brokerage firms and dealers insecurities can be classified according to the three broad … Continue reading “The Brokerage Business”
STEPS IN INVESTMENT Undertaking an investment is a very important decision in life. Therefore all care must be undertaken to ensure the success of such an investment. There are certain things that need to be considered no mater the type of investment you want to undertake. This may be the difference between a successful investment … Continue reading “Steps in Investment”
