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The risks of buying goods on credit, such as using a credit card, are that a person's debt burden increases. As long as the amount owed is easily paid based on a persons monthly income, then there is no problem. It can become a problem if the individual loses their job. Then how will monthy payments be made becomes the question. The end result will be a bad credit rating unless suitable arrangements are made with the credit card company.
Buying stocks and bonds on margin is risky if the transaction is not closed out before the stock, for example goes into a steep decline. For example, if a stock is selling at $100 per share is purchased on 50% margin, the other 50% is lent to the buyer from the brokerage firm. That $50 per share draws interest. No one can borrow without paying interest to the lender.
In this example, here is the risk element. If the stock bought at $100 per share drops quickly to $25 per share and the investor decides it must be sold, the net amount to the investor is a $75 loss per share. The investor already owes the brokerage firm $50 plus interest. The net of $25 means the investor has lost $50 of his or her own money and must also pay the stock broker another $50 plus interest which was the amount loaned.
In the investor's account is $25. The investor has lost his or her $25 plus the $50 of the stock broker.
Now there is a debt of $50 the investor must pay to the broker, plus interest.
The bottom line is that a huge loss has been incurred by the investor.
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Account freezing and money laundering are the mostly frequently encountered political risks in the foreign business. Being scammed is another political risk.
What best describes the risk status if any one element of risk shrinks to zero?
There is no risk
What cost and risks were involved in going on pilgrimages?
One of the risk is that whilst traveling you could get an injury or maybe worse you could die!
What is political risk?
The political risk refers to the instability of the political system in a country.
How much taxpayer money goes to abortions every year?
Taxpayer pay for abortions through Medicaid who helps women below the poverty line in some states, victims of rape and incest and also when a woman's health is at risk in all states. Exactly how much of all the money Medicaid gates each year that is spent on abortions for these reasons I can not find anywhere.
How can I avoid losing money in stocks?
The biggest tip is to avoid high risk stocks. With your situation you'll want to only get money from those stocks which don't show much rapid rises or falls.
What is the risk in selling bonds?
no risk involved, its like putting money in the bankl
Is there a risk if one is working with international money management?
The main risk if one is involved in international money management is the risk of currency exchanges having a negative impact on the money that has been invested.
How does the risk involved in a money market mutual fund compare with the risk of a certificate of deposit?
The risk of the money market mutual fund is slightly greater than that of the CD
How does the risk involved in a money market mutual fund compare with the risk of certificate of deposit?
The risk of the money market mutual fund is slightly greater than that of the CD
What is the interest on 10.000.000?
The answer depends on the interest rate! This will depend on a number of factors:whether you are borrowing or lending that money,for how long,in which country,the risk of default on the loan.
How does the risk involved in a money market mutual fund compare with the risk of a certificate of deposit (CD)?
the risk of the money market mutual fund is slightly greater than that of the CD
Is investing in penny stocks worth the money?
Typically, penny stocks are high risk stocks and experts advise people to avoid them due to the fact that they fluctuate rapidly. For information, see http://business.solveyourproblem.com/stock-trading/penny_stocks_high_risk_investing.shtml.
Stock investing tips for people nearing retirement?
You want to invest in stocks that are low risk and that are most likely to have steady growth and return. I would suggest going to cnn money for information on stocks for retirement.
What are some things that would be good to invest in?
You can buy bonds from the government or you invest in the stock market. Pick some specific stocks that you like and based on your risk level. Many stocks also pay dividends so you can make more money off of your stocks.
What are junk stocks?
Junk stocks or Penny stocks are stocks of companies that are relatively new or very small. These companies are not fundamentally sound and do not follow efficient management practices. The chances of these companies posting good results and profits is low but since the price of these stocks are very low some people with heavy risk appetite invest in them. Since the chances of making money by investing in these low value stocks they are called junk stocks or penny stocks.
Which stocks involve the most risk taking?
Investment in high risk stocks is a potentially lucrative and dangerous undertaking. These volatile, "high flyer" stocks move up and down the market dramatically. Examples of such stocks currently include CARBO Ceramics and Priceline.
