Term
Diversification
Owning many different things so no single one can sink you. If two companies out of 500 go bankrupt, you barely notice.
In pesos: $20,000 MXN in one stock can go to zero; the same $20,000 across 500 companies cannot.
Where to go deeper
4/4 5 min Read Why the S&P 500 goes up or down What the S&P 500 actually measures, the four forces that move it, and why the daily number is mostly noise.More terms on the same topic
Educational content only: not financial, investment or tax advice. The numbers are examples to understand the idea, not a forecast or a recommendation.