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Risks in Stock Trading<br />
 What does a Market Risk imply? <br />
Market Risk<br />This is the risk of investing in the stock market in general. It refers to a chance that a security’s val...
What does an Industry Risk<br />imply? <br />
Industry Risk<br />This is risk that affects all companies in a certain industry<br />For e.g. Utility companies, are ofte...
What does a Regulatory Risk<br />imply? <br />
Regulatory Risk<br />Virtually every company is subject to some sort of regulation. It refers to the risk that the governm...
What does a Business Risk <br />imply? <br />
Business Risk<br />These are the risks unique to an individual company<br /> It refers to the uncertainty regarding the or...
Risks in Stock Trading<br />Remember: <br /><ul><li>All stocks are affected by market risk
All stocks within an industry are subject to industry risk
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Equity - Types of Risk

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Equity - Types of Risk

  1. 1. Risks in Stock Trading<br />
  2. 2. What does a Market Risk imply? <br />
  3. 3. Market Risk<br />This is the risk of investing in the stock market in general. It refers to a chance that a security’s value might decline<br />Although a particular company may be doing poorly, the value of its stock can go up because the stock market value is collectively going up<br />Conversely the value of the stock might drops because of negative factors inflation, rising interest rates, political instability etc. <br />
  4. 4. What does an Industry Risk<br />imply? <br />
  5. 5. Industry Risk<br />This is risk that affects all companies in a certain industry<br />For e.g. Utility companies, are often viewed as relatively low in risk because the utility industry is stable and operates in a predictable environment with relatively little change<br />In contrast, internet and other technology industries are usually viewed as high in risk because the industry is changing so quickly and unpredictably<br />
  6. 6. What does a Regulatory Risk<br />imply? <br />
  7. 7. Regulatory Risk<br />Virtually every company is subject to some sort of regulation. It refers to the risk that the government will pass new laws or implement new regulations, which will dramatically affect a business.<br />
  8. 8. What does a Business Risk <br />imply? <br />
  9. 9. Business Risk<br />These are the risks unique to an individual company<br /> It refers to the uncertainty regarding the organizations ability to perform business or provide service<br />Products, strategies, management, labour force, market share, etc. which are among the key factors investors consider in evaluating the value of a specific company<br />
  10. 10. Risks in Stock Trading<br />Remember: <br /><ul><li>All stocks are affected by market risk
  11. 11. All stocks within an industry are subject to industry risk
  12. 12. All stocks are subject to regulatory risks due to government policies and a company can be affected by business Risk</li></li></ul><li>Thank you<br />

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