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Stock Risks, Types & Terms
Stock risk
Interest rate risk - might drop
Inflation risk - hold longer, market out rise faster
Default risk - fails to pay you back

Stocks Characteristic:
Choose shares that seldom need voting
Fixed dividends
Perpetual maturity
Less volatile price

Type of stocks:
Cyclical stock - good during expansion, bad during recession, e.g. airline
Defensive stock - not very sensitive to business cycle, e.g. food and utility stock
Growth stock - very volatile, least dividends, put profits into investing again to rise faster
Value stock - underpriced stock, nothing to do with business. Never oversold or temporary out of favour
Blue-chip stock - low volatility, performance stock, usually for long term
Speculative stock - unproven young companies, roller coaster rider
Interest rate sensitive stock - affects when interest rate changes, e.g. utility installment machinery
Income stock - pays higher dividends, more stable when growth stock prices are tumbling
International stock - stocks of foreign companies

Stock terms
Cash account - able to borrow money from broker
Long position - buy up
Short position - buy down
Market order - buy shares
Limit order - buy shares are certain price
Stop order - stop buying or sell, usually is lower or higher than expected
Inflation Risks are more profitable than others ..
I think so.. What about you Alexander?
Nice list...!!
Thanks for the post.....
Thanks for sharing.....
Risk can be determined by a lot of factors, even a person's age and gender can determine the kind of risk he will face.
So how do you identify which risk is which and how do you prevent them?
You forget about director's risk - where the director run away with the money...
Keep everything liquid now is the best options

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