What is a Stock Portfolio?

Answer:
A stock portfolio is a collection of investments

such as stocks, bonds and mutual funds that are owned by an individual or an organization.

Stock portfolios often follow an overall theory or investment plan based on the investor’s tolerance for risk or investment time frame.

For example, a retiree may want to build a stock portfolio that is geared toward preserving principal and generating current income while a young business professional may have a more aggressive stock portfolio emphasizing growth. The retiree’s portfolio will be stacked with a greater number of bonds while the young business professional will have a stock-heavy portfolio.

No matter what type of portfolio you have, it’s important to review it each year to make sure the balance of stocks and bonds still match your investment goal. As your investments grow, you may find that your portfolio now has too many stocks without enough bonds to balance the risk.

If this happens, you will need to sell some of the stocks and invest in a few more bonds to get your portfolio back into your desired mix.


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	What are Securities? What are Discount Rates with regards to Investments? What is a Par Value? What are Stocks? What are Bonds? What is a Common Stock? What is a Clone Fund? What is a Basket Trade? What is a Running Market? What is a Mutual Fund? What are Dividends? What are Distributions? What does FDIC insured mean? What is Bail? What is A Bail Bond? What are SEC filings?