Investment Fundamentals

Risk

Definition

What is Risk?

The possibility that an investment outcome differs from what was expected, including the chance of loss.

Example in practice

A share may deliver high growth but also carries the risk of a sharp price decline.

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The original amount of money invested or lent, excluding later returns.

Money or other resources committed to produce income, growth, or another economic benefit.

An asset or commitment of money made with the expectation of future income, growth, or both.

Anything with economic value that can be owned or controlled.

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