Glory with capital: risk introduction with the capital stock

  In recent years time, the international financial markets continue to flourish, can be fast, and the prosperity of financial markets promote economic development, many of my friends will participate in the economic construction of which come by way of investment, but also money money. Where everyone shares is more like a project, even without sufficient funds, will choose to operate with the capital. Here to tell you about the stock with a capital risk.
  1. Policy risk of economic policies and governance procedures may constitute a stock loss of revenue, which is especially prominent in emerging markets. For example, changes in the fiscal and tax policies will affect the company's profits, changes in commercial policy on the stock market may indirectly affect the price of the stock. Other seemingly related policies, such as housing reform, the stock market will also affect the supply and demand of funds.
  2. The interest rate risk business stock price at market prices rather than stop at par price. When interest rates rise, the absolute cost of investment stock will be reduced, resulting in a decline in all stock prices. The level of market interest rates also affect the market price changes.
  3. The risk of purchasing power due to the uncertainty of the real purchasing power due to price changes, purchasing power risk is known as the risk of inflation. Slight easing of inflation will increase investment demand, thereby mobilizing the vitality of the stock market; when inflation exceeds a certain percentage, since the future return on investment will soar, the purchasing power of money will decrease the spring, that is, the actual return on investment will be lower, which will impact investors in the investment.
  4. It is the stock market investment risk sport most common and rare risk. Especially in emerging markets, the stock market turmoil of the more complex features, price fluctuations, market risk is also large, which is the indirect result of fluctuations in the stock price.
  Above is related presentations on the stock with capital risk, the glory with the capital hoping to bring some help to you. As we all know, the stock is now more popular with the capital investment, it attracts a lot of friends to join. But we should also be aware that, with capital stock is also at risk, so we need to learn some relevant knowledge and skills, so as to make our investment more smoothly.

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