More terms
Diversification
Spreading investments across companies, categories, or asset classes to reduce the impact of any single loss.
What traders should verify
For Diversification, inspect the legal structure, adviser and Form ADV, investor eligibility, strategy, holdings, fees, leverage, liquidity, conflicts, and reporting date.
Do not conflate
The label Diversification does not by itself establish registration status, current holdings, liquidity, risk, performance, or investor eligibility.
Primary source
SEC definitionSource boundary: this glossary reflects SEC staff views and is not a Commission rule, regulation, or statement. Check the linked source for current wording and legal context.