Investment Risks Flashcards
1
Q
Capital Risk
A
the risk of loss of the principal value of an asset or security
2
Q
Interest rate risk
A
is a loss of market value on fixed income securities because of a rise in interest rates
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.
4
Q
Credit risk
A
is the risk that a company will declare bankruptcy or financial obligations won’t be met
5
Q
Economic and social risk
A
refers to how domestic and world affairs affect investments