SKM_658e XXXXXXXXXX

PRINCIPLES
OF
FINANCE
Investments can always be described as a decision that is made by weighing the risk and return. Risk is the uncertainty of the future. Return is the maximum amount of benefit that can be derived by investment in certain plans, stocks or business proposals. A good investment decision can be hence defined as investment in a stock that has an optimum amount of risk and that helps to have a good amount of return to the investor.
Many individuals withdraw their interest in investment in stock market due to the fear in losing due to the risky proposition. But in an analysis it was found that this risk can be mitigated to lower level by understanding the major risks that can be involved in the stock market. The major six risks that are involved in stock market investing are rating risk, emotional risk, financial risk, inflation risk and economy risk.
Apart...