Investment Risks Flashcards

1
Q

Capital Risk

A

the risk of loss of the principal value of an asset or security

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2
Q

Interest rate risk

A

is a loss of market value on fixed income securities because of a rise in interest rates

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3
Q

liquidity risk

A

is the risk that an investor will not be able to sell or liquidate a security at the fair market value.

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4
Q

Credit risk

A

is the risk that a company will declare bankruptcy or financial obligations won’t be met

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5
Q

Economic and social risk

A

refers to how domestic and world affairs affect investments

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