FINRA has reissued an investor alert regarding market risk, to remind investors that investing involves risks as well as rewards and that, generally speaking, the higher the risk, the greater the potential reward.
FINRA believes that "[w]hile it is important to consider the risks in the context of a specific investment or asset class, it is equally critical that investors consider market risk."
Common market risks include Interest Rate Risk, Inflation Risk, Currency Risk, Liquidity Risk, Sociopolitical Risk, Country Risk and Legal Remedies Risk.
Each of these market risks are discussed in the alert, as well as suggestions for managing these risks.
'Market Risk: What You Don't Know Can Hurt You | FINRA.org
