In our previous illustration we discussed a few key terms that will help one diversify one’s financial portfolio. It does not matter how one diversifies one’s financial portfolio, but risk management is key. We will continue with a few basic key terms in order to help one move forward with one’s financial portfolio.


NASDAQ  Also known as the National Association of Securities Dealers Automated Quotation, is the world’s first electronic quote system that provides price quotes and supports trading for over-the-counter stocks. It has the ability to create or stimulate a market by purchasing some of the stock being offered and representing it to its own investors.

S&P Also known as Standard and Poor’s  is an index of 500 stocks chosen for market size, liquidity and industry grouping. The S&P is designed to be a leading indicator of U.S. equities.

Dow Jones is an indicator of stock market prices; based on the share values of 30 blue-chip stocks listed on the New York Stock Exchange.The Dow Jones Industrial Average is the most widely cited indicator of how the stock market is doing.