Risk takes many forms, but is generally classified as the possibility that the outcome or actual return on an investment will differ from the expected outcome or return.
Risk includes the possibility of losing part or all of the investment.
There are several types of risk and several ways to quantify risk for analytical evaluations.
Risk can be reduced by using diversification and hedging strategies.
Risk acceptance or risk containment is a conscious strategy of recognizing the possibility of small or rare risks without taking measures to hedge, hedge or avoid these risks.
Audit risk is the risk that the financial statements will be materially incorrect, even if the auditor’s report indicates that the financial statements do not contain any material misstatement.
The bid-ask spread is the difference between the highest price a buyer is willing to pay for an asset and the lowest price a seller is willing to accept.
Counterparty risk is the likelihood or likelihood that one of the parties to a transaction may fail to meet its contractual obligations. Counterparty risk may exist in lending, investment and trading transactions.
Preliminary analysis in financial markets refers to the forecasting of various indicators, economic and financial, by evaluating past and present data and parameters.
A good delivery is understood as an unhindered transfer of ownership of a security from the seller to the buyer in compliance with all necessary requirements.
Immunization is a risk mitigation strategy that equalizes the duration of assets and liabilities so that the value of the portfolio is protected from changes in interest rates.