Liquidation risk does not belong to system risk.
Investment risks mainly include market risk, ability risk, financial risk, interest rate risk, liquidation risk and event risk.
1, market risk
Market risk refers to the risk that the value of investment assets will decline due to market changes or price fluctuations. Market risk is one of the most common investment risks, and the influencing factors include macroeconomic cycle, policy changes, market supply and demand, etc. The coping strategies of market risk include diversifying investment, flexibly adjusting investment portfolio and setting stop-loss points.
2. Ability risk
Capability risk refers to a capital society and a prosperous economic society, where inflation is significant and the money for buying goods or enterprises will gradually decrease. When people deposit cash in the bank to collect interest, they will worry about rising prices and currency depreciation. Because of this risk, people should invest in stocks, real estate or other investment policies to maintain the purchasing power of their money.
3. Financial risks
Buying stocks, the company's performance is poor, dividends are reduced, and stock prices are falling. This is the financial risk. Because of this risk, some people deposit their funds in banks and charge interest to reduce financial risks.
4. Interest rate risk
When buying bonds, their prices are affected by the interest on 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.
5. Liquidation risk
When the stock you bought can't be sold at a reasonable price and you can't recover the funds, it is a risk of liquidation. The investment target should be able to recover the funds at a reasonable price at any time, and it is a highly liquid stock.
6. Event risk
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.