Index
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Diversification
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.
Dividend
Cash payment made by a company to stockholders.
Dividend yield
Total amount of cash dividends received annually on a share of stock divided by the price of the stock.
Due diligence
A company's legal obligation to obtain documentation to establish certain information before a contract is signed or transaction completed. It often relates to the process that companies carry out when they are about to acquire another company to determine all of the financial information and liabilities before an acquisition is completed.