Investing into different types of securities is known as what?

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Investing in different types of securities is referred to as diversifying. Diversification is a fundamental strategy in investment management that involves spreading investments across various financial instruments, industries, and other categories to reduce risk. The idea is that by holding a variety of investments, the overall performance of the portfolio can be more stable over time, as different assets may react differently to market conditions.

For instance, if one sector performs poorly, others may perform well, thereby balancing out potential losses. This concept is crucial for individual and institutional investors alike, as it helps mitigate the impact of any single investment's poor performance on the overall portfolio.

In contrast, the other terms like converting, stockpiling, and expanding do not specifically encapsulate the strategy of spreading investments across different types of securities and thus do not accurately describe the practice of diversification in investing.

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