“The Stock Market is Risky!”I believe most of us would have heard the above phrase or something like that at least once in our lives. Most of the time, it is from our loved ones or friends who care about us. So let’s go through what is risk and how we go about mitigating a thing called risk.
The definition of risk is (according to Merriam-Webster Dictionary):
1) possibility of loss or injury
2) someone or something that creates or suggests a hazard
3) a : the chance of loss or the perils to the subject matter of an insurance contract
b : a person or thing that is a specified hazard to an insurer
c : an insurance hazard from a specified cause or source
4) : the chance that an investment (as a stock or commodity) will lose …