market risk
"Market risk" is a key concept in finance, referring to the potential for investment losses due to changes in market conditions.
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Definition
C1Finance
(technical)The possibility of investment losses due to changes in market factors like prices, interest rates, and exchange rates.
Example
- Investors must consider market risk when making decisions about their portfolios.
- The sudden drop in stock prices increased the market risk for many investments.
C1Finance
(technical, academic)The uncertainty in the financial market that affects all investments and cannot be eliminated through diversification.
Example
- Even well-diversified portfolios are subject to market risk.
Similar
Terms that have similar or relatively close meanings to "market risk":