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To protect against a single company collapsing, investors own a variety of stocks. That practice is:

AConsolidation
BDiversification
CSpeculation
DLiquidation
Answer & Solution
Correct answer: B. Diversification
1. Holdings are spread out. 2. One failure then hurts less. 3. It is diversification. _Source: OpenStax Principles of Finance 2e, Chapter 15, How to Think about Investing._
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