Investment in the stock market involves risks. The possibility of facing a loss for an investor affects the financial market performance. Market risk also called “Systematic risk “.The risk which declines the market profitable situation in to a disaster one. Market risk occurs due to recessions, political turmoil, changes in interest rates and terrorist attacks.
Risk may be of two types
1. Systematic Risk - Systematic risk occur due to external factors of an organization. This risk is uncontrollable.
2. Unsystematic Risk - Unsystematic risk occur due to internal factors of an organization. This risk is micro in nature.
Top risks involved in stock market
1. Economic Risk - These are also know as external risk .This may occur due to fluctuation in market such as changes in demand for the product, price fluctuation, changes in income.
2. Market Risk - Market risk also be called as un-diversifying risk. This risk occurs when there is fluctuations occur in trading price of any particular shares & securities.
3. Liquidity Risk - Liquidity risk is a type of risk where investment is quickly converted in to cash without bearing any loss. These risks occur when the sales and purchase of securities get affected by business cycles.
4. Financial or credit Risk - This risk occur due to change in changes in the capital structure of an organization. There are various types of financial risk such as exchange rate risk, credit event risk, sovereign risk and settlement risk.
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Risk may be of two types
1. Systematic Risk - Systematic risk occur due to external factors of an organization. This risk is uncontrollable.
2. Unsystematic Risk - Unsystematic risk occur due to internal factors of an organization. This risk is micro in nature.
Top risks involved in stock market
1. Economic Risk - These are also know as external risk .This may occur due to fluctuation in market such as changes in demand for the product, price fluctuation, changes in income.
2. Market Risk - Market risk also be called as un-diversifying risk. This risk occurs when there is fluctuations occur in trading price of any particular shares & securities.
3. Liquidity Risk - Liquidity risk is a type of risk where investment is quickly converted in to cash without bearing any loss. These risks occur when the sales and purchase of securities get affected by business cycles.
4. Financial or credit Risk - This risk occur due to change in changes in the capital structure of an organization. There are various types of financial risk such as exchange rate risk, credit event risk, sovereign risk and settlement risk.
Searching for STOCK TIPS then contact us: http://capitalstroke.com/stock-tips.php
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