Final answer:
A brokerage is a firm or individual that facilitates the buying and selling of financial securities. Investors can purchase stocks through brokerage firms. Diversifying your portfolio means spreading investments across different assets to reduce risk.
Step-by-step explanation:
In the context of brokerage services, a brokerage is a firm or individual that facilitates the buying and selling of financial securities, such as stocks, bonds, and mutual funds, on behalf of clients. Investors can purchase stocks through brokerage firms, either online or in-person. These brokerage firms provide access to stock exchanges where investors can place their orders.
Diversifying your portfolio means spreading your investments across different assets to reduce risk. By investing in a variety of stocks, bonds, and other financial instruments, you can potentially minimize the impact of a single investment's performance on your overall portfolio. This strategy can help mitigate losses and improve the chances of achieving long-term financial goals.