march.T_u3db.fin

march.T_u3db.fin - Catherine March Unit 3 DB June 25, 2009...

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Catherine March Unit 3 DB June 25, 2009 FIN 410 Risk and Capital Risk is the possibility of loss or injury. In the investment world risk is the chance of financial loss. In life we take chances on so many things. When it comes to investing there is a large risk involved. Not only is it because it is your money but also because of stock that you may be investing in. It is said that the higher the risk the higher the return. When there is risk involved there is also a return involved. A return is either a gain or a loss on an investment. A return is the cash that is distributed during a period and the change in the value of the stock. Some look at investment as an all out win for the company and a negative for the investor. Investing is sometimes like rolling a dice. You really don’t know what you may get. With all the studying of the stock market and analyzing you may come up with a winner for a while and then that particular stock can drop and then you are at a loss. Risk affect not only firms but stockholders. There are different types of risk. Firm
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march.T_u3db.fin - Catherine March Unit 3 DB June 25, 2009...

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