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Risks in Securities Field

Essay by   •  May 17, 2011  •  Essay  •  258 Words (2 Pages)  •  1,904 Views

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Securities is considered as one of the tools in enhancing the economics growth in each countries since it does the nice flow of the capital from the surplus one to the lack one, and it could make the capital circle in the economic action. In fact, securities products includes the bonds, stocks, and derivatives, etc.. ,and investing in the securities, investors will earn the high return if they invest in the right equipment with the right time a long with the right decision. However, it will bring the losses to the investors in many ways as well since the securities investment contains some risks include: systemic risk, systematic risk, credit risk, inflation risk, currency risk, financial risk, information risk, and many other risks so that it could prevent investors from making benefit from their investment. Some of these risks are preventable, yet some are not. For example, if the risks that are happened by the market or the inflation, it may not be able to protected, yet, it the risks happened by the careless of the investors regarding to their decision, it's considered as the risks that is be able to prevent by enhance the education about the securities before you invest your money in it. To sum up, investing in securities is somehow not so bad if you understand its risks as well as its effective ways to protect. And all the investors themselves are required to have the capacity in investing and be qualified enough if they want to become the successful investors in this field.

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