Smart asset allocation balances risk across stocks, bonds, and real estate.

Diversification reduces risk by spreading investments across different sectors.

Cash is the most liquid asset you can hold.

A mutual fund pools money from many investors to buy a diversified portfolio.

An index fund tracks a market index like the S&P 500.

ETFs combine the benefits of mutual funds and individual stocks.

Stock prices rose sharply during the bull market.

Many investors sold their stocks during the bear market.

A 10% drop in stock prices is considered a market correction.

Dollar-cost averaging reduces the impact of market volatility on investments.

Annual rebalancing keeps your portfolio aligned with your target allocation.

Capital gains tax applies when you sell an asset for more than you paid.

A 401(k) is a tax-advantaged account for retirement savings.

The net asset value of the fund increased by 12% this year.

Choose funds with a low expense ratio to maximize returns.

You need a brokerage account to buy and sell stocks.

She bought shares listed on the New York Stock Exchange.

Large-cap companies have a market capitalization over $10 billion.

A low P/E ratio may indicate an undervalued stock.

Rising earnings per share signal a healthy and growing company.

Fundamental analysis evaluates a company's financials to determine its intrinsic value.

Technical analysis uses price charts and patterns to predict future movements.

Short selling profits when a stock's price falls.

Margin trading amplifies returns but also increases risk of loss.