capital investing investment risk
There are many types of risk involved in using equity or loan capital for investment purposes. These factors may include (but not be limited to) credit risk, interest rate risk, regulatory risk, country risk, exchange rate risk, market risk, re-investment risk, and liquidity risk. For many types of investments, regulations ensure that the risk factors involved are discussed in the prospectus that is offered for potential investors. For example, these risk factors are discussed in the prospectus that companies provide for potential investors in initial public offerings (IPOs) of equity capital. Capital Investing Investment Risk - EducationTo educate yourself on the potential risks of investing, you should consider using a financial consultant or a financial adviser. These people can help you formulate a suitable investment strategy and adjust your investment goals to your risk tolerance and life situation. For many, the first (and oftentimes free) financial adviser contact is the local bank's account manager or financial adviser. If your bank can't offer the services you require, they may be able to recommend good financial advisers in your area. In addition, you can consult The National Association of Personal Financial advisers. Their goal is to be able to find available financial advisers for consumers of all income levels. The National Association of Personal Financial advisor's' website is located at www.napfa.org. |