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Longer-term investors regularly hear the virtues of diversification across distinctive asset classes. Nevertheless, risk and return expectations vary widely inside the exact same asset class, specifically if it's a significant a single, as is the case with the equities class. For example, a blue-chip stock that trades on the New York Stock Exchange (NYSE) has a quite unique threat-return profile from a micro-cap stock trading on a modest exchange. Investing is the act of allocating funds or committing capital to an asset, such as a stock or bond, with the expectation of producing revenue or a profit. The expectation of a return in the form of revenue or price tag appreciation is the core premise of investing. Low danger commonly signifies low expected returns, while larger returns are commonly accompanied by higher risk.