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Stock Risks, Types & Terms
#1
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
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#2
Inflation Risks are more profitable than others ..
I think so.. What about you Alexander?
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#3
Nice list...!!
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#4
Thanks for the post.....
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#5
Thanks for sharing.....
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#6
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.
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#7
So how do you identify which risk is which and how do you prevent them?
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#8
You forget about director's risk - where the director run away with the money...
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#9
Keep everything liquid now is the best options
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