Term Definition
Asset Anything having commercial or exchange value that is owned by a business, institution or individual.
Diversification The practice of investing in a variety of assets. This is a risk management technique where, in a well-diversified portfolio, any loss from an individual holding should be offset by gains in other holdings, thereby lessening the impact on the overall portfolio.
Risk The chance that an investment's return will be different to what is expected. Risk includes the possibility of losing some or all of the original investment.
Volatile/Volatility When the value of a particular share, market or sector swings up and down fairly frequently and/or significantly, it is considered volatile.