Market Risk

Market risk refers to the potential for financial loss due to changes in the overall market conditions, such as fluctuations in stock prices, interest rates, or currency values. These changes can impact the value of investments or business assets, influenced by economic factors, geopolitical events, or market sentiment. Market risk is inherent in investing and can’t be eliminated, but it can be managed through diversification and other strategies. Essentially, it’s the risk that market movements will negatively affect the value of your assets or investments.