What Are the Risks Associated with Share Price Fluctuations?
Investing in stocks carries inherent risks due to the volatility of share prices. Some of the risks include:
Market Risk: The risk of losses due to overall market declines. Liquidity Risk: The risk that an investor may not be able to buy or sell shares quickly enough without affecting the share price. Company-Specific Risk: Risks related to the company's specific circumstances, such as poor management decisions or financial struggles. Economic Risk: The risk of losses due to broader economic changes, such as recessions or changes in interest rates.