The Role of Stocks in a Diversified Portfolio


When it comes to investing, one of the key principles is diversification.​ Diversifying your portfolio means spreading your investments across different asset classes to reduce risk and maximize returns.​ While there are various asset classes to choose from, one of the most popular and common ones is stocks.​ In this article, we will explore the role of stocks in a diversified portfolio and why they play such a crucial role in investment strategies.​

What are stocks?​

Stocks, also known as shares or equities, represent ownership in a company.​ When you buy stocks, you become a shareholder and have the right to participate in the company’s profits and growth.​ The value of stocks can fluctuate based on various factors, such as company performance, market conditions, and investor sentiment.​

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