Question:
Which risk is associated with uncertainty in market prices affecting transaction outcomes?
Which risk is associated with uncertainty in market prices affecting transaction outcomes?
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Market risk is the risk of loss from changes in market prices affecting transactions.
Updated On: Jul 7, 2025
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Solution and Explanation
The risk associated with uncertainty or fluctuations in market prices that can affect the outcome of a transaction is called Market Risk.
Market Risk refers to the possibility of losses due to changes in the value of securities caused by factors such as:
Price volatility
Interest rate changes
Economic events
Political developments
This risk impacts traders, investors, and financial institutions as the value of their holdings or trades can vary unexpectedly.
Market Risk refers to the possibility of losses due to changes in the value of securities caused by factors such as:
Price volatility
Interest rate changes
Economic events
Political developments
This risk impacts traders, investors, and financial institutions as the value of their holdings or trades can vary unexpectedly.
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