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This is part of a collection of definitions on Financial Literacy. This defines the term stock portfolio.
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Algebra >> Expressions, Equations, and Inequalities >> Numerical and Algebraic Expressions

Definition--Financial Literacy--Stock Portfolio

Stock Portfolio

Stock Portfolio

Topic

Financial Literacy

Definition

A stock portfolio is a collection of stocks owned by an individual or institution, representing a range of investments.

Description

A stock portfolio is a crucial tool for diversifying investments and managing risk. By holding a variety of stocks, investors can mitigate the impact of poor performance by any single stock. Understanding how to build and manage a stock portfolio is essential for achieving long-term financial goals. In real-world applications, a well-balanced portfolio includes stocks from different sectors and regions, tailored to the investor's risk tolerance and investment objectives. Math education introduces students to concepts of diversification, risk management, and portfolio analysis. A teacher might explain, "A stock portfolio is like a basket of different stocks, which helps spread out risk and improve your chances of earning a good return."

Stock Portfolio
A balanced stock portfolio includes stocks from different types of businesses.

For a complete collection of terms related to Financial Literacy click on this link: Financial Literacy Collection.

Common Core Standards CCSS.MATH.CONTENT.HSA.CED.A.1
Grade Range 8 - 10
Curriculum Nodes Algebra
    • Expressions, Equations, and Inequalities
        • Numerical and Algebraic Expressions
Copyright Year 2023
Keywords financial literacy, stock market, stocks, stock price, stock index, stock portfolio