January 2014
Beginner
272 pages
5h 54m
English
Content preview from Understanding Stocks 2E, 2nd EditionBecome an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
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3
Fun Things You Can Do (with Stocks)
In this chapter, you will learn about diversification, allocation, compounding, and stock splits. Let’s look at each of these concepts one by one.
Diversification: Avoid Putting All Your Eggs in One Basket
One way to reduce risk is by diversification, so instead of betting your entire portfolio on one or two stocks, you spread the risk by investing in a variety of securities. (A portfolio is made up of securities, including stocks, mutual funds, bonds, and cash equivalents, that you own. You will learn about these products in Chapter 8.) The idea behind diversification is that even if one or two investments go sour, your other investments can make up the losses.
At the most basic level, if you put all your ...
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I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.Addison B.
I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.Amir M.
I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.