investment-spread

Vocabulary Word

Definition

'investment spread' is a way to distribute your investments in different types of assets. This reduces the risk of losing all your money if one investment doesn't work well.

Examples in Different Contexts

In Risk Reduction, 'investment spread' aims to minimize exposure to any single investment's failure. An investment strategist might explain, 'By applying a broad investment spread, we diversify risk and increase the potential for stable, long-term gains.'

Practice Scenarios

Business

Scenario:

It's important to continually reassess our company's investment strategy to stay competitive and grow sustainably.

Response:

Yes, we need to reevaluate our investment spread to capitalize on new opportunities and maintain a balance with ongoing projects.

Tech

Scenario:

Emerging sectors like green energy and AI present compelling opportunities for us. We need to consider how best to balance our portfolio.

Response:

That's a good point. We can enhance our investment spread by including emerging sectors in our portfolio.