Key Risks in Investing in Securities Market

Market Risk: It refers to the risk faced by investments due to factors affecting the overall performance of securities and the general economy of the country.
Unsystematic Risk: It is the risk attached to a particular company or industry.
Inflation Risk: Also known as Purchasing Power Risk, it is the chance that the cash flows from an investment would lose their value in the future due to a decline in its purchasing power because of inflation.
Liquidity Risk: It arises when an investment can’t be bought or sold quickly enough.
Business Risk: It refers to the risk that a business of a company might be affected or may stop its operations due to any unfavorable operational, market, or financial situation.
Volatility Risk: It arises as companies’ stock prices may fluctuate over time.
Currency Risk: It refers to the potential risk of loss from fluctuating foreign exchange rates that an investor may face when they have invested in foreign currency or made foreign-currency-traded investments.