What is the greatest financial risk for investors?

  • Thread starter Thread starter RED VIPER
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Losing all the money invested. The greatest risk is the investor psychology and emotion. If he cannot be discipline to cut losses, he will be destroyed sooner or later
 
The greatest financial risk is losing all one's money, or losing out in an up market, by sitting on the sidelines.
Common equity is more risky, and can rise or fall faster than convertible debt.
 
Equity has the greater risk. Debt positions are high up on the 'food chain' to get repaid if the company goes bust, equity positions are makes people/institutions owners. If a company goes bust, the owner is usually not compensated by remaining assets/ accounts payable/ bank accounts- whatever, but people who are owed money (debt holders) are.
 
The greatest financial risk is losing all one's money, or losing out in an up market, by sitting on the sidelines.
Common equity is more risky, and can rise or fall faster than convertible debt.
 
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