What Is Equity Risk?

Equity investment risk is the possibility of investor investment loss caused by various uncertainties in the process of equity investment and holding equity. It mainly includes: Market risk. That is, changes in stock market conditions may give investors frequent losses. Operational risk. That is to say, changes in the company's operating conditions may cause losses to investors. Purchasing power risk. That is, inflation may bring losses to investors. Institutional risk. That is, the losses that may be caused to investors due to the adjustment of the system. [1]

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