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Financial Risk

Financial riskFinancial risk consist of different types of risks related to to various financial transactions.There are different types of financial risk such as market risk,credit risk,operational risk and liquidity risk etc.Financial risk represents the chance of loss to the investors while trading in  securities of a particular company.Successful investors always keep an aye on these types of risks,before jumping into the arena of stock investing.



Stock investors use different types of techniques to counter financial risks.Hedging and diversification are the two most important techniques to counter financial risks.Stock investors should keep different types of stocks in their portfolio to counter the financial risk.

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