2. Financial risks

3. Interest rate risk

4. Market risk

5. Liquidity risk Liquidity risk

6. Event risk Event risk

1. Ability risk Purchasing ability risk: In a capital society and a prosperous economic society, inflation is significant, and the money for buying goods or businesses will gradually decrease. When people deposit cash in the bank to collect interest, they will worry about rising prices and currency depreciation.

2. Financialrisk Financial risk: When buying a stock, the company's performance is poor, dividends are reduced, and the stock price falls. This is the financial risk.

3. Interest rate risk Interest rate risk: When buying bonds, their prices are affected by the interest of bank deposits. When the interest rate of bank deposits rises, investors will deposit funds in banks, and bond prices will also fall. This kind of loss caused by the change of interest rate level is called interest rate risk.

4. Market risk: the market price fluctuates frequently. There are different market prices every day. The fluctuation of market price is influenced by economic factors, psychological factors, political factors and even the above three risks. For example, buying a stock, and then the stock price falls and suffers losses, which is market risk.

5. Liquidityrisk: refers to the risk that the purchased stocks cannot be sold at a reasonable price and the funds cannot be recovered. Many stocks, which have always had a low turnover, suddenly flourished as soon as there was news, such as acquisition news. At this time, a large number of stocks were chased. Once the news is over, their trading volume will resume, so they are at risk of liquidation. The investment target should be able to recover the funds at a reasonable price at any time. This is a highly liquid stock.

6.Eventrisk: Event risk has nothing to do with finance and market, but after the event, it has caused a heavy blow to the stock price. The risk of such an event is usually sudden.