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Price Risk - The market price of stock can go up and down. A price risk is a risk coming from the possibility that the price of stock or physical commodities declines (goes down) The investment is worth less than what is paid for in the first place. Commodities are used by contract buyers, bought upon contract on spot markets or future markets. These commodities are also market-sensitive and the price can go up or down here as well. The risk to lose money on stock is mostly temporarily but when stock prices in general are going down, the financial world can land into a crisis. |
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