Risk of using stock market for investment
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Answer:
#1. Market Risk. The price of a stock is determined by the demand and supply of the said stock in the share market. ...
#2. Company Risk. ...
#3. Liquidity Risk. ...
#4. Taxability Risk. ...
#5. Interest Rate Risk. ...
#6. Regulatory Risks. ...
#7. Inflation. ...
#1. Diversification.
Explanation:
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shavaniesspencer234:
can u explain the liquidity risk
Liquidity risk occurs when an individual investor, business, or financial institution cannot meet its short-term debt obligations. The investor or entity might be unable to convert an asset into cash without giving up capital and income due to a lack of buyers or an inefficient market.
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Answer:
Risks of stocks
Returns are not guaranteed – While stocks have historically performed well over the long term, there's no guarantee you'll make money on a stock at any given point in time. ...
You may lose money – Stock prices can change often and for many reasons.
Explanation:
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