Pfizer is a pharmaceutical company involved in the development and manufacture of medication for human beings and animals. It distributes medications to over 140 countries. It was first created in 1849 by Charles Pfizer and Charles Erhardt in Brooklyn, New York. In 2000, the company merged with Warner-Lambert and has continued to gain in sales of its pharmaceutical products as illustrated by the Pfizer stock price.

You can choose to diversify your stock portfolio with different options after you have reviewed the Pfizer stock price. One way in which investors diversify is in the type of stock they buy. If their portfolio contains only Income stocks, they will add more Blue Chip stocks or vice versa. Some companies also add cyclical or defensive stock brands to their portfolio in order to diversify.

Another way to diversify your portfolio is to buy stocks in a different sector. For example the Pfizer stock might be a different type of stock than the one you have associated with your portfolio. The Pfizer Company belongs to the pharmaceutical sector and this is one way to diversify your portfolio if you do not currently own any stocks in the pharmaceutical industry. This is a good idea because there is a certain amount of risk attached to a portfolio in only one sector. For example if all the stocks were in the gas and oil companies, then when the market in this sector did badly, your whole portfolio would take a beating as compared to having a diversified portfolio with a stable Pfizer stock price.

Diversification is recommended for all investors to protect than from the drops in the market value of types of stocks or from industry sectors. Many leaders in the industry recommend adding stocks of more than one type and sector and also the addition of mutual funds and CDs to lessen the risk of financial loss.