Diversified Investment Company

Diversified Investment Company - This is a general term used to describe a company that buys securities from a wide range of companies, in a wide range of area and the securities are of a ?diverse? type. This means that the chance of a failure within a certain type of security would not have a marked affect on the overall portfolio because the diversity of the other securities would buffer the rise or fall of the value any one. There are specific guidelines that allow only minimal investment in any one company, thereby ensuring that the success or failure of one company will not seriously devalue the overall price of shares in this company.