What Does It Mean to Rebalance Your Portfolio?

What does it mean to rebalance your portfolio

Rebalancing your portfolio is an important strategy that helps keep your investments aligned with your long-term financial goals and risk tolerance. As markets fluctuate, the value of different asset classes in your portfolio—like stocks, bonds, and real estate—will rise and fall. Over time, some assets may become overrepresented, while others might become underrepresented. Rebalancing is …

Is Market Capitalization the Same as Market Valuation?

market capitalization and market valuation

Understanding the difference between “market capitalization” and “market valuation” is essential for investors and anyone analyzing the financial worth of a company. Although these terms may seem similar, they have distinct meanings and applications in the world of finance. Market capitalization, often referred to as market cap, is a straightforward calculation that reflects a company’s …