Price Volatility And Risk

2010/10/27 15:52:00 58

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Price Share Market

Price

Volatility and risk.

Shares are traded on the market.

paction

Objects, like commodities, have their own market conditions.

market

Price.

Because the stock price is influenced by many factors, such as the company's management, supply and demand, bank interest rate and public psychology, its fluctuation is very uncertain.

It is this uncertainty that may cause losses to stock investors.

The greater the uncertainty of price fluctuation, the greater the risk of investment.

Therefore, stock is a high-risk financial product.

For example, the international business machine (IBM), which dominated the world's computer industry, had a high price of $170 per share when its performance was uncommon, but its share price dropped to $40 when its position was challenged and business misconduct was incurred.

If the timing is not high enough to buy the stock at a high price, it will lead to serious losses.