Disclaimers
Glossary

Investing Glossary

Plain-English definitions of the portfolio terms behind the Grader.

  • Concentration Risk

    Concentration risk is the exposure that arises when a large share of a portfolio sits in a single holding, sector, or asset class, so its ups and downs drive the whole portfolio.

  • Diversification

    Diversification is the practice of spreading investments across many holdings, sectors, and asset classes so that no single position determines the outcome of the whole portfolio.