ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Generally, investors will lose all of their money, unless a small portion of their investment is redeemed through the sale of any company assets.

Detailed explanation-2: -Otherwise known as investment risk, permanent loss of capital is the risk that you might lose some or all of your original investment, if the price falls and you sell for less than you paid to buy.

Detailed explanation-3: -All investments involve some degree of risk. In finance, risk refers to the degree of uncertainty and/or potential financial loss inherent in an investment decision. In general, as investment risks rise, investors seek higher returns to compensate themselves for taking such risks.

Detailed explanation-4: -Financial risk refers to the likelihood of losing money on a business or investment decision. Risks associated with finances can result in capital losses for individuals and businesses. There are several financial risks, such as credit, liquidity, and operational risks.