15 STOCK MARKET RISKS

Stock Market Risks 

Market Risk: The risk of loss due to general market movements, including fluctuations in the economy, political events, or changes in interest rates.

Inflation Risk: The risk of losing purchasing power due to inflation, which erodes the value of investments over time.

Currency Risk: The risk of losing money due to fluctuations in currency exchange rates, particularly if investments are held in foreign currencies.

Interest Rate Risk: The risk that changes in interest rates will affect the value of investments, particularly bonds and other fixed-income securities.

Liquidity Risk: The risk of not being able to sell an investment quickly or at a fair price, particularly during periods of market volatility.

Credit Risk: The risk that a company or other issuer will default on its debt obligations, which can lead to significant losses for investors.

Regulatory Risk: The risk of changes in laws and regulations that can affect the value of investments, particularly in industries that are heavily regulated.

Operational Risk: The risk of losses due to errors, fraud, or other operational failures within a company or investment firm.

Country Risk: The risk of investing in countries with unstable political environments, weak economic conditions, or other factors that can increase investment risk.

Event Risk: The risk of unexpected events, such as natural disasters, terrorist attacks, or other unforeseen events, that can have a significant impact on investments.

Reinvestment Risk: The risk that future investment returns will be lower than expected, particularly if the investor needs to reinvest funds at lower interest rates.

Volatility Risk: The risk of sudden and significant fluctuations in market prices, particularly for stocks and other volatile investments.

Systematic Risk: The risk that is inherent in the entire market or economy, rather than specific to a particular investment.

Unsystematic Risk: The risk that is specific to a particular investment or company, rather than inherent in the entire market or economy.

Valuation Risk: The risk that investments are overvalued or undervalued, which can lead to losses if market prices eventually adjust to reflect the true value of the investment.

LEARN MORE ABOUT MARKET RISKS

https://en.m.wikipedia.org/wiki/Market_risk#

Basic knowledge of the share market or equity market.

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