Introduction to Personal Investing

Investing Risks

What are some examples of risks?

Some examples of risks that may affect the prices of investments include: a natural disaster that causes Wall Street to shut down; a disruption in the pumping and transportation of oil; an abrupt change in the exchange rate between two currencies; an abrupt change in interest rates; corporate expenses that never made the expected return for the company; and use or misuse of technology in a company. All may have an adverse effect on an investment’s price at that moment in time. Some of these events may have extremely short-term effects on the prices of target investments, while others may affect the long-term prices of potential investments. Short-term and long-term risks need to be considered when making investing decisions.


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