Market Risk

What Does Market Risk Mean?
The day-to-day potential for an investor to experience losses from fluctuations in securities prices. This risk cannot be diversified away.

Also referred to as "systematic risk".

Investopedia explains Market Risk
The beta of a stock is a measure of how much market risk a stock faces.

Related Terms

100% Equities Strategy
Asset Quality Rating
Beta
Conditional Value at Risk - CVaR
Diversification
Home Bias
Operational Risk
Risk
Systematic Risk
Unsystematic Risk
More Related Terms

Related Links

Beta: Gauging Price Fluctuations - Learn how to properly use this measure that can help you meet your criteria for risk.
Does The Basel Accord Strengthen Banks? - This 1988 agreement sought to decrease the potential for bankruptcy among major international banks.
Beta: Know The Risk - Beta says something about price risk, but how much does it say about fundamental risk factors?
The Importance Of Diversification - Without this risk-reduction technique, your chance of loss will be unnecessarily high.
Build A Dividend Portfolio That Grows With You - Balance risk and return to produce adequate income despite inflation.
Determining Risk And The Risk Pyramid - Many investors do not understand how to determine the level of risk their individual portfolios should bear.
Risk and Diversification: Different Types of Risk - Learn about the different kinds of risk that investors must face.
Financial Concepts - Diversification? Optimal portfolio theory? Read this tutorial and these and other financial concepts will be made clear.

Get a new investing term in your inbox each day!

- join our Term of the Day!