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DEFINITION of 'Portfolio'. A grouping of financial assets such as stocks, bonds and cash equivalents, as well as their mutual, exchange-traded and closed-fund counterparts.Portfolios are held directly by investors and/or managed by financial professionals.Next Up.hink of an investment portfolio as a pie that is divided into pieces of varying sizes representing a variety of asset classes and/or types of investments to accomplish an appropriate risk-return portfolio allocation.
It, incidentally, should prove it is pointless to wait for a stock split before buying shares of a company. Share Price Relative to Value. It all serves to make one very important point: share price by itself means nothing. It is share price in relation to earnings and net assets that determine if a stock is over or undervalued. Going back to the question I posed at the beginning of this article, assume the following: Company ABC is trading at $10 per share and has EPS of $0.15.