The 5% rule of investing refers to a strategy where investors allocate a small portion, typically 5% of their portfolio, to high-risk, high-reward investments. This approach aims to balance risk and reward, allowing for potential large gains while limiting the overall impact of losses on the portfolio.
7 answers
EnchantedMoon
Mon Dec 02 2024
Markups and markdowns are also restricted.
ethan_harrison_chef
Mon Dec 02 2024
The regulation covers various types of trades.
KimonoGlitter
Mon Dec 02 2024
The regulation in question has a long history.
BlockchainBrawler
Mon Dec 02 2024
The Financial Industry Regulatory Authority enforces it.
SsamziegangSerenade
Mon Dec 02 2024
This regulation aims to maintain fairness in the financial market.