Glossary Asset Allocation

Asset Allocation

Definition of Asset Allocation

Asset allocation is a strategy or method in which an investor decides how much money they should allocate to an investment based on their risk profile, financial goals, and other factors to maximize returns and minimize risk.

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Related Terms

Assets

An asset is anything that has economic value and is owned by anindividual, company, or group. Assets are bought to generate returns in the future.

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Assets And Liabilities

An asset is something that has monetary value and can generate profits in the future while a liability is a debt that’s repayable immediately or in the future. Assets are owned whereas liabilities as owed.

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At The Close Or Closing Price

At the close or closing price is the last traded price of securities like stocks, ETFs, and others at the end of regular market hours.

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At The Money

At The Money is a scenario in which the strike price of an options contract is the same as the market price of its underlying security.

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At The Opening

At the opening is an instruction to execute an order at the open price, which is the price of a security at the start of regular stock market hours.

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Authorized Capital

Authorized capital or authorized share capital is the maximum amount of capital for which shares can be issued by a company to its shareholders.

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