Terms

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Financial Dictionary

Thousands of investors have told us they are confused by the investment jargon that is used by financial advisors. We also know some terms, that investors don't understand, are used by advisors as sales ploys. They establish themselves as experts when they define a term you may not understand. 

There is an alternative. We have defined more than 1,500 commonly used financial terms. Look-up a definition by entering the term in the search engine or using the alphabetical search service. 

Definition of 'Asset Allocation'

The process by which assets are invested in multiple categories such as stocks, bonds, and cash equivalents. Allocation is the same as diversification and its primary purpose is to minimize the risk of large losses. There are also sub-categories of assets such as domestic stocks and international stocks.

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