Investment risks refer to the potential uncertainties and financial losses that an investor may face when allocating capital into various investment vehicles, such as stocks, bonds, real estate, or other financial assets. These risks arise from uncertainties in the market, economic fluctuations, changes in interest rates, geopolitical events, and specific factors relating to the companies or sectors in which one invests.
Investment risks can be categorized into various types, including market risk (the risk of losses due to market fluctuations), credit risk (the possibility that a borrower will fail to meet obligations), liquidity risk (the risk of being unable to sell an asset without affecting its price), and operational risk (related to failures in internal processes or systems). Understanding these risks is crucial for investors to make informed decisions, implement risk management strategies, and build a diversified portfolio that aligns with their financial goals and risk tolerance. Proper assessment of investment risks helps in minimizing potential negative impacts on an investment’s performance.
Sparkling Numbers, Dimming Stocks In a surprising twist, C3.ai (NYSE:AI) saw its stock price plunge by approximately 5% in premarket trading on Tuesday. This decline came despite the company's fiscal…