Question

1. define the word diversification and explain what it means for investors. 5. name the 3 major stock exchanges in the us

Explanation:

Diversification is spreading investments across various assets to reduce risk. For investors, it means not putting all eggs in one basket. By investing in different - types of assets like stocks, bonds, real - estate etc., an investor can mitigate the impact of poor performance of a single asset on their overall portfolio.

Answer:

Diversification is the practice of spreading investments across a variety of assets. For investors, it helps in risk - reduction by minimizing the impact of the performance of a single asset on the entire portfolio.