rebalancing
/riːˈbælənsɪŋ/
adjusting a portfolio back to its target asset allocation by buying and selling assets
rebalancing in a sentence
“After the equity rally, he rebalanced his portfolio by trimming stocks and adding bonds.”
Origin of rebalancing
Re + balance, from Latin bilanx having two scales
Related Words
alpha
excess return on an investment relative to the return of a benchmark index
beta
a measure of how much a security moves relative to the broader market; a beta above 1 means more volatile
P/E ratio
price-to-earnings ratio — the price of a stock divided by its annual earnings per share
short squeeze
a rapid price increase that forces short sellers to buy back shares at a loss, accelerating the rise
market order
an instruction to buy or sell a security immediately at the best available current price
diversification
spreading investments across different assets, sectors, or geographies to reduce risk