All investments carry some level of risk, but that risk can be managed effectively to help you reach your financial goals while protecting your assets. Understanding the different types of risk and how to mitigate them is key to balancing potential rewards with safety.
This FINRA resource breaks down the concept of investment risk, explaining how various factors—like market conditions, corporate decisions, or political events—can affect the value of your investments. It also covers key types of risk such as market risk, business risk, and concentration risk, and it discusses the relationship between risk and reward. By understanding these risks, investors can make more informed decisions and better manage their financial futures.
