Inflation Risk in the Context of Capital Markets
Inflation risk is the risk that rising inflation will erode the purchasing power of an investor’s assets in the capital market over time. This risk is particularly relevant for fixed-income…
Inflation risk is the risk that rising inflation will erode the purchasing power of an investor’s assets in the capital market over time. This risk is particularly relevant for fixed-income…
Interest rate risk is the risk that changes in interest rates will affect the value of investments in the capital markets. This risk is particularly relevant for fixed-income investments such…
Accumulation is a process of gradually gathering or amassing wealth, capital, or assets over time. This concept is central to various economic theories and practices, encompassing the accumulation of physical…
Currency risk, also known as exchange rate risk, is the risk that an investment’s value will decline due to changes in currency exchange rates. This risk is particularly relevant in…
Political risk refers to the risk of financial losses that result from political events or instability in a country. These events can range from government policy changes, election outcomes, civil…
Credit risk refers to the risk of loss that investors may face due to the default or non-performance of a borrower. In the capital market, credit risk can arise when…
Accumulated earnings tax (AET) is a tax imposed by tax authorities on corporations that retain earnings beyond a reasonable level, instead of distributing them as dividends to shareholders. This tax…
The risk of not being able to sell an investment quickly or easily enough to meet financial needs or obligations is referred to as Liquidity risk. In the context of…
When a business or company experiences financial losses or other negative impacts due to factors related to its operations, such as competition, changes in consumer demand, or changes in industry…
Market risk is the risk that the value of an investment made will decline due to changes in the overall market conditions. In the case of the capital markets, this…