Capital Risk

Dictionary Says

Definition of 'Capital Risk'


1. The risk an investor faces that he or she may lose all or part of the principal amount invested.

2. The risk a company faces that it may lose value on its capital. The capital of a company can include equipment, factories and liquid securities.

Investopedia Says

Investopedia explains 'Capital Risk'


1. For example, when someone invests $10,000 into the stock market, he or she faces a capital risk on the $10,000 invested.

2. If a company does not insure the value of some of its assets, it will face capital risk from such things as fire, flood and theft.


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