It depends if the stock marketis good. Because if it drops and you have stocks you loose money.
Why was stock bought on margin considered a risky investment
They can't provide Collateral - Apex : )
No, "liquid" assets and investments are those MORE EASILY converted into cash. The term "liquidity" refers to the relative ease and speed with which investments can be "liquidated" (turned into cash or its equivalent), either to remain cash or be placed into another investment.
This type of fund is considered relatively risky and more volatile than many other funds because it typically focuses on securities of companies or industries with unproven potential for strong growth
Share trading can be either, it depends on how much of a share you choose to trade and what kind. The best way to know if it's a safe investment to trade a share is to talk to whoever is in charge of watching over your investments.
taking risky investments
Risky investments make the company more vulnerable towards the market frictions. If the company is making risky investments - shareholders and debt-holders might require higher rate of return on their capital. Basically, the riskier the investment the more costly it is for the business.
An investment is considered risky if the probability of loss is high. However, risky investments can also produce dramatic gains. So if you want to speculate that a given risky investment will pay off, you have to balance that against the possibility that you will lose some or all of the investment. That's why rash or all-or-nothing investment strategies lead to ruin.
Why was stock bought on margin considered a risky investment
They can't provide Collateral - Apex : )
authorized to force banks to sell off investments that they consider excessively risky
Investments in the below instruments are not riskyGovernment BondsBank DepositsPost Office DepositsBonds issued by companies held partly/fully by the governmentGold & other precious metalsLand/Property
Stock market prices are not to be trusted because they vary from day to day and even hour to hour. They do not follow any traditional rules as far as investments are concerned. Stock market prices will go up a down depending on the performance of the Company that is being invested in. There are no guarantees for return for the stock market and therefore are considered risky investments.
Hedge funds are considered a risky investment. The reason they are considered risky is because they are a type of fund that is not regulated.
Stock markets can be risky. It depends on how you invest. For example, many financial advisors would suggest a diverse portfolio that includes stocks, bonds, and other investments. Diversification minimizes the risk that is inherent in investing.
They are as risky as stock market investments. The only good thing here is the fact that, the fund is managed by experienced professionals, therefore the chances of making a profit are better compared to us investing in stocks directly.
Foreign investment.