These actions may range from changes in tax or trade statutes to expropriation, governmental collapse and war. Combining resources for a common purpose such as in mutual funds. The fund uses pooled funds to invest in various assets, thus diversifying risk. A group of securities held by an individual or institution which may contain various types of assets such as stocks and bonds. The purpose of a portfolio is to diversify risk.
Portfolio managers are professionals responsible for the securities portfolio.
The second person has total discretion over the account. Stock price divided by last year's earnings. A market is primary if the proceeds of the sale go to the issuer. The rate is determined by the market forces that affect a bank's cost of funds and the rates that borrowers will accept. The prime rate is a key interest rate for commercial lending.