Capital Risk


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.

BREAKING DOWN '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.

  1. Event Risk

    1. The risk due to unforeseen events partaken by or associated ...
  2. Capital

    1) Financial assets or the financial value of assets, such as ...
  3. Capital Asset

    A type of asset that is not easily sold in the regular course ...
  4. Risk-Return Tradeoff

    The principle that potential return rises with an increase in ...
  5. Risk

    The chance that an investment's actual return will be different ...
  6. Risk Capital

    Investment funds allocated to speculative activity. Risk capital ...
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