Upload
kotak-securities
View
2.066
Download
1
Tags:
Embed Size (px)
Citation preview
Market Risk
• This is the risk of investing in the stock market in general. It refers to a chance that a security’s value might decline
• 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
• Conversely the value of the stock might drops because of negative factors inflation, rising interest rates, political instability etc.
Industry Risk
• This is risk that affects all companies in a certain industry
• 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
• In contrast, internet and other technology industries are usually viewed as high in risk because the industry is changing so quickly and unpredictably
Regulatory Risk
• 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.
Business Risk
• These are the risks unique to an individual company
• It refers to the uncertainty regarding the organizations ability to perform business or provide service
• Products, strategies, management, labour force, market share, etc. which are among the key factors investors consider in evaluating the value of a specific company
Risks in Stock Trading
Remember: • All stocks are affected by market risk• All stocks within an industry are subject to industry risk• All stocks are subject to regulatory risks due to government
policies and a company can be affected by business Risk
Thank You!
Questions? Feedback?
Twitter FacebookWebsite
Read More
• Registered office: Kotak Securities Limited, 1st Floor, Bakhtawar, 229, Nariman Point, Mumbai - 400021. SEBI Registration No: NSE INB/INF/INE 230808130, BSE INB 010808153/INF 011133230/INE 011207251, OTC INB 200808136, MCXSX INE 260808130.
• Disclaimer: Investments in securities are subject to market risks, please read the SEBI prescribed Combined RDD prior to investing.
• * Awarded Best Brokerage Firm in India by AsiaMoney in 2006, 2007, 2008 and 2009