1. Vocabulary - Stocks Aa Aa E What Does It Mean? Match the terms associated with stocks on the left with the descriptions of the terms on the right. Read each description carefully and type the letter of the description in the Answer column next to the correct term. These are not necessarily complete definitions, but there is only one correct description for each term. Term Answer Description Asset allocation A. Diversification Rebalancing Risk-free rate This is the term used to describe how to divide your investments among different asset classes. B. This term is used for distributions that an investor receives by getting additional stock of the company as a supplement or instead of cash dividends on the existing stock. C. This is the return an investor can get from a security that can be considered to have zero default risk. D. This is the strategy of distributing your money among different assets so that the gains in one asset can offset any losses in another asset class. E. This refers to stocks of big companies like Apple, GE etc. that have large market capitalization. F. This is an option given to stockholders where they can choose to reinvest their dividend earnings into buying additional shares of the company's stock. G. This refers to the process of redistributing the proportion of assets in your portfolio as defined in your investment plan. H. This term is calculated by dividing annual dividends received per share with the market price of the share. Proxy Dividend yield Stock dividends Dividend reinvestment plan (DRP) Large-cap stocks I. This refers to stocks of companies with lower market value which is calculated by multiplying the number of company's shares outstanding by its stock price. J. This is an authorized document that allows another person to vote instead of the owner of the stock. Small-cap stocks