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Definition of 'Regulatory Risk'
The risk that a change in laws and regulations will materially impact a security, business, sector or market. A change in laws or regulations made by the government or a regulatory body can increase the costs of operating a business, reduce the attractiveness of investment and/or change the competitive landscape.
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Investopedia explains 'Regulatory Risk'
For example, utilities face a significant amount of regulation in the way they operate, including the quality of infrastructure and the amount that can be charged to customers. For this reason, these companies face regulatory risk that can arise from events - such as a change in the fees they can charge - that may make operating the business more difficult.
Another type of regulatory risk would be a change by the government in the amount of margin that investment accounts are able to have. While this is an unlikely change, if it were to be changed, the impact on the stock market would be material as this would force investors to either meet the new margin requirements or sell off their margined positions.
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Search results for 'Regulatory Risk'
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http://www.investopedia.com/ask/answers/09/series66-022409.asp
A. Regulatory risk.B. Market risk.C. Liquidity risk.D. Business risk.Correct answer:
BBusiness risk is minimized with a diversified fund, and. ...
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http://www.investopedia.com/exam-guide/series-66/portfolio-risks/duration-stock-risks.asp
... Regulatory risk - The risk that laws may change and impact the business, industry
or governmental entity, thus having an impact on the value of the security; ...
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http://stocks.investopedia.com/stock-analysis/2010/The-Coal-Industry-A-Look-At-2010-BTU-ACI-ANR-WLT0106.aspx
... Tickers in this Article: ACI, ANR, BTU, WLT. The coal industry heads into 2010 hampered
by an uncertain economy, weak domestic demand and regulatory risk. ...
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http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/event-risk.asp
... Profitability Ratios; 7.4 Return on Investment Ratios; 7.5 Operating Efficiency
Ratios; 7.6 Business Risk Ratios; 7.7 Financial Risk Ratios; 7.8 ...
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http://www.investopedia.com/articles/economics/08/economic-capital.asp
... their risks, such as credit risk, market risk, operational risk, counterparty risk,
pension risk and others. Basel II also sets out regulatory guidance and ...
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http://stocks.investopedia.com/stock-analysis/2012/MetLife-Seems-Seriously-Underestimated--MET-PRU-GNW-SLF0216.aspx
... Although interest rate risk and regulatory risk are still very real, and MetLife
is not an especially exciting company, these shares are worth a serious look ...
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http://www.investopedia.com/exam-guide/series-7/securities-markets/self-regulatory-organization.asp
... 9. Securities Markets: 9.1 Introduction; 9.2 Self-Regulatory Organization (SROs ... 11.4
Financial Considerations; 11.5 Determining A Client's Risk Tolerance; 11.6 ...
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http://stocks.investopedia.com/stock-analysis/2010/The-War-Over-Hydraulic-Fracturing-SLB-BHI-HAL-WFT-PTEN-CPX0915.aspx
... Some of the companies in the exploration and production industry may have
underestimated the regulatory risk in the business model as the opponents of ...
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http://stocks.investopedia.com/stock-analysis/2007/Setting_The_Gold_Standard_NEMGGAAUK.aspx
... Goldcorp carries more than a casual amount of geopolitical, currency and regulatory
risk in addition to its non-hedged position in the commodities the company ...
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http://stocks.investopedia.com/stock-analysis/2011/Green-Dot-Looking-Black-And-Blue-GDOT-NTSP-WU-WMT-MA0808.aspx
... Even though Green Dot has disappointed some investors and there is still some
regulatory risk, the stock seems to have skidded past a point where the ...
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