Diversification is a technique that reduces risk by allocating investments
among various financial instruments, industries, and other categories.
Not exact matches
Diversification always makes
financial sense, as it reduces reliance on a singular credit type and allocates risk
among various credit
instruments.
When investment banks began hiring mathematicians and physicists to concoct new ways of classifying and mitigating the risks of
various mortgage backed securities (
among other risky
financial instruments) that had become too complicated, the back rooms of Wall St.'s investment houses effectively made the common American Investor nothing more than a pawn.