Investing Archives | Wealthspire

Volatility Definition Volatility is the amount and frequency with which an investment fluctuates in value. A volatile market gives traders opportunities to make money quickly, but also leaves room to lose money quickly as well. Planning Strategies for a Volatile Market Market volatility can bring about fear and loss for investors, but it can also provide some unique planning opportunities. One potential action to consider in volatile times might be capital tax-loss harvesting, a technique that enables investors to sell securities that have lost value in order to offset realized capital gains and maintain their desired exposures. Another strategy to…

Diversification Definition Diversification is the process of owning different investments that tend to perform well at different times in order to reduce the effects of volatility in a portfolio, and also increase the potential for increasing returns. What is an Example of Diversification Strategy? A simplified example of a diversification strategy is a street vendor who sells both umbrellas and sunglasses, with the addition of some tourist trinkets. Having a mix of products like this ensures that he or she can earn money on both sunny and rainy days and is also selling some products that can generate income regardless…

What are Equities? Equities are shares issued by a company which represent ownership in the company. Ownership of property, usually in the form of common stocks, as distinguished from fixed-income securities such as bonds or mortgages. Stock funds may vary depending on the fund’s investment objective. Equities vs. Stocks While often used interchangeably, the terms “equities” and “stocks” actually refer to slightly different things. Essentially, a “stock” is one of the most common types of equity, with “equity” referring to the general concept of ownership. What are Examples of Equities? Some of the most common forms of equity include: Common…