Agglomeration refers to the accumulation into a single entity, such as a holding company, of several diverse and unrelated activities. Conglomerate companies often embody this concept.
A conglomerate is a large corporation formed by the merger or acquisition of smaller companies, each operating in distinct, often unrelated, industries. This structure is typically chosen to diversify risk and achieve financial stability across various market sectors.
Diversification refers to the strategy of spreading investments or business activities across different fields or products to minimize risks and enhance growth.
The practice of spreading investments or a series of business operations across different sectors, asset classes, or geographies to mitigate risks and maximize returns.
A Fund of Funds (FoF) is a mutual fund or hedge fund that invests in a portfolio consisting of other investment funds rather than investing directly in stocks, bonds, or other securities. This investment strategy provides enhanced diversification and the potential for reduced risk by spreading investments across multiple fund managers and asset classes.
An investment portfolio is a collection of various assets such as stocks, bonds, real estate, and other investment instruments owned by an individual or an organization to achieve financial goals.
In the world of finance, a portfolio refers to the collection of investments held by an individual or institution. This diversified set of holdings could include stocks, bonds, commodities, real estate, and other assets.
A theoretical approach to investment choices based on the assumption that for any given expected return, rational investors will seek to minimize their risk, and for any given level of risk, they will seek to maximize their return.
A Property Investment Certificate (PINC) is a financial tool or instrument that represents an individual's or entity's ownership in real estate investments, allowing for diversified exposure to property markets.
Systemic risk, also known as market risk or systematic risk, refers to the part of a security’s risk that is common to all securities within the same general class and cannot be eliminated by diversification. The measure of systemic risk for individual stocks is the Beta Coefficient.
