What Is Diversification? Definition, Strategies & Examples

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The Street

By TheStreet Staff What Is Diversification in Investing? In finance and investing, diversification is a popular term for mitigating risk by dividing one’s investments between a variety of asset classes and investment vehicles. Diversification also refers to dividing one’s investments within each asset class. For instance, In addition to diversifying their portfolio by investing in stocks, bonds, real estate, certificates of deposit, and collectible baseball cards, an investor could further diversify their portfolio within the stock asset class specifically by investing in small, mid, and large…

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