The spreading of the money invested across a range of assets (e.g. shares) but without examining the risk-return features of each share or the interrelationships between how these shares would be expected to perform. For example, investing in the shares of twenty companies may be constituted as diversification but if the twenty companies are all high-street retailers the diversification is naïve.

A US stock exchange based in New York City. NASDAQ is an acronym for National Association of  Securities Dealers Automated Quotations.

A supplier of goods and services in a particular market where there are, in total, only a few suppliers

Investors who hold share market portfolios (plus any risk-free assets) rather than their own selections of specific shares from within the overall share market.

A collection of shares and/or other financial assets.

A method of investing where equal sums of money are invested in shares (or other financial assets) each month or year (or other time period). This method avoids the risk of investing larger, one-off, sums of money at times when share prices might be at a temporarily high level.

The property that is the main place of residence of a taxpayer.

Units of ownership interest issued by companies to investors to raise finance. Shares normally have no maturity date. They may be bought and sold on the relevant stock exchange at their prevailing price in the market. Also known as equity/equities.

The risk associated with a specific (individual) company (and hence its shares).

The action taken by active investors who select specific shares for their portfolio with the aim of achieving a greater return than the overall share market.