RISKS IN THE CAPITAL MARKET

Market Risk

Market risk is the risk that the market will move against an investor’s investment position. It is the risk faced by investors because of the fluctuations in prices of stock in the Capital market.

Industry risk Industry

Industry risks may occur as a result of adverse government policy, technological change, availability or otherwise of raw materials etc.

Regulatory risk

Every company operates in any country faces the risk of rules, and regulations moving against them. Since these companies are bound to obey the laws of the country, changes in these rules can be a significant risk which can make some companies declare huge losses or even declare bankruptcy.

Business Risk

This is the probability that a company will make lower profits than it anticipates or that it will make a loss instead of a profit. Business risk is influenced by both external and internal factors. External sources of business risk include overall economic climate, increasing competition in the industry and government regulations while internal sources include sales volume, input costs, productive capacity, etc.

Country Risk

Decline in prices of crude oil in global markets Exchange rate volatility Inflationary pressures External headwinds, including slower global growth and unforeseen events (e.g Covid -19 pandemic)
Quick Links
Useful Links
Useful Links

1st FLOOR, A.G LEVENTIS BUILDING
42/43,
MARINA LAGOS
WEBSITE: www.trustyieldssecurities.com
Email: info@trustyieldssecurities.com
TELEPHONE: 07011781068

Copyright 2019. All Right Reserved. Trust Securities Limited (TYSL). Leventis Building, 1st Floor | 42/43 Marina, Lagos