Beruflich Dokumente
Kultur Dokumente
Introduction
9. Risk Risk
Risk risk refers to not knowing the risk of a
security.
Two ways to mitigate or eliminate risk risk are:
i.Keep up with the literature on the state-of-the-art
methodologies for analyzing securities
ii.avoid securities that are not clearly understood
Market-broadening instruments
Market-broadening instruments augment the
liquidity of markets and the availability of
funds by attracting new investors and offering
new opportunities for borrowers.
Risk-management instruments
Risk-management instruments reallocate
financial risks to those who are less averse
to them or have offsetting exposure.