Course 502: Building a Portfolio, Part 2
Final Steps
In this course
1 Introduction
2 Time Horizon
3 Liquidity
4 Legal and Regulatory Issues
5 Final Steps

When it comes to the constraints inherent in building a portfolio, there are no set rules to follow. The issues discussed above may be important for some individuals and not as significant for others. But all investors should recognize their constraints and structure their portfolios accordingly. The portfolio-building process is dynamic and constantly changing; as a result, the final steps in the portfolio process include monitoring and analyzing the portfolio. In doing so, you can adjust the portfolio to changing market conditions, if you'd like, or alter it as your goals change. You should also measure and compare the performance of your individual stocks and overall portfolio to relevant benchmarks. Compare your stocks' performances to market indexes and industries to get a sense of how the portfolio is performing. We include such benchmarks on our Stock Reports. Enter your portfolio in our Portfolio Manager to get a feel for how your investments, as a group, are performing. Are they generating the type of return that you need to reach your goals? If not, you may need to make some alterations.

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