Business Risk

 

                How do you define Business Risk? Winning choices in investing in stocks & bonds depends on the proper management of the business you invest in. If the company you own stock in is well managed and its product is doing well, it should pay dividends and its stock should become more valuable over time. However, if the company operates at a loss, then someday they may have to “pay the piper” and file bankruptcy - then the stock becomes worthless. The best way to reduce Business Risk is to carefully research the company before investing in its stock.

 

 

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