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What risks are Stock Investing II

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 What risks are Stock Investing II

In addition the second risk is that risk Liquidation. Owned companies, declared bankrupt by a court, or the company dissolved.

In this case the claim rights of shareholders last priority after all the obligations of the company may be paid (from the sale of the company's assets).

If there are still remaining from the sale of the company's wealth, then the rest is distributed proportionally to all shareholders. But if there are no remaining corporate property, then the shareholders will not get any results from such liquidation.

This condition is a risk of the hardest of the shareholders. For that a shareholder is required to continuously follow the development of the company.

 

In the secondary market or the trading activities of daily stocks, stock prices fluctuated either increase or decrease. The formation of stock prices is due to the demand and supply of shares. In other words, stock prices are formed by supply and demand for the stock.

 

Supply and demand is a concern because of many factors, both the specific nature of these shares (the performance of companies and industries where the company is moving) and the nature of macro factors such as interest rates, inflation, exchange rates and factors such as non-economic social conditions and politics, and other factors