In financial risk, we have explained, Liquidity Risk, Solvency Risk and Interest Rate Risk. Today we concentrate on equity risk
We can delineate equity risk as the risk of loss of investment amount in equity shares due to change in the prices of stock market. We all read that stock market price indexes are changed. Suppose, you have purchased $ 100 shares of any USA company, there is no guarantee that its price will increase, it is risk that you will face loss, if its price will decrease.
Equity Risk Management
So, it is very necessary for investor to check the trends and investment analysis should be kept up. Not only for equity shares but he must also see the trends of other securities and only invests if trend is should be normal or average. If any security is high fluctuate, never invest in that security.
We can delineate equity risk as the risk of loss of investment amount in equity shares due to change in the prices of stock market. We all read that stock market price indexes are changed. Suppose, you have purchased $ 100 shares of any USA company, there is no guarantee that its price will increase, it is risk that you will face loss, if its price will decrease.
Equity Risk Management
So, it is very necessary for investor to check the trends and investment analysis should be kept up. Not only for equity shares but he must also see the trends of other securities and only invests if trend is should be normal or average. If any security is high fluctuate, never invest in that security.
