MANAGEMENT

Detailed explanation-1: -Most financial investments, such as the purchase of stock, involve speculative risk. It is possible for the share value to go up, resulting in a gain, or go down, resulting in a loss.

Detailed explanation-2: -Market/systemic risk Market risk applies mainly to stocks and options.

Detailed explanation-3: -Speculative Risk: Three possible outcomes exist in speculative risk: something good (gain), something bad (loss) or nothing (staying even). Gambling and investing in the stock market are two examples of speculative risks. Each offers a chance to make money, lose money or walk away even.

Detailed explanation-4: -Pure risk refers to risks that are beyond human control and result in a loss or no loss with no possibility of financial gain.

Detailed explanation-5: -Speculative stocks are high-risk, high-reward, and tend to appeal to short-term traders. Speculative stocks tend to be clustered into sectors or types: penny stocks, emerging market stocks, rare materials stocks, pharmaceutical stocks, etc.