Value and Ethics in Business – A Basic Understanding
Values and ethics in simple words mean principle or code of conduct that govern transactions; in this case business transaction. These ethics are meant to analyse problems that come up in day to day course of business operations. Apart from this it also applies to individuals who work in organisations, their conduct and to the […]
Importance of Communication in an Organization
Effective Communication is significant for managers in the organizations so as to perform the basic functions of management, i.e., Planning, Organizing, Leading and Controlling. Communication helps managers to perform their jobs and responsibilities. Communication serves as a foundation for planning. All the essential information must be communicated to the managers who in-turn must communicate the […]
Why Do Some Business Leaders Attain Greatness Whereas Others Fail?
What Makes Some Business Leaders Truly Great? Business Leaders such as Bill Gates of Microsoft, the Late Steve Jobs of Apple, Mark Zuckerberg of Facebook, Larry Paige and Serge Brian of Google, Warren Buffet of Hathaway Berkshire, and closer home, NR Narayana Murthy are known around the world as great persons who exemplified the best […]
Degree of Virtuality in Virtual Teams
Most of the discussion about the virtual teams is centered around 100% virtual teams i.e. pure virtual team. Earlier only the extent of geographical distribution of team was used to determine the virtuality of teams. But now more and more research is being conducted to look at other dimensions which affect the level of virtuality. […]
Basic Workplace Ethics for an Organization
Let us go through some workplace ethics: Rules and regulations ought to be same for everyone. Everyone needs to attend office on time irrespective of their designation, distance of their home from the workplace, salary or status. An individual cannot come to office late just because he is the team leader and his team is […]
In stock market there is strong relationship between risk and return. Greater the risk, greater the return generally! In financial terminology risk management is the process of identifying and assessing the risk and then developing strategies to manage and minimize the same while maximizing the returns.
Every investment demands a certain amount of risk and for an investor to assume this risk he has to be compensated duly. This compensation is in the form of something called as the risk premium or simply the premium. Risk is therefore central to stock markets or investing because without risk there can be no gains. Successful investors use stock market risk management strategies to minimize the risk and maximize the gain.
In financial markets there are generally two types of risk; first the Market Risk and second the Inflation Risk.
The inflation risk is an important consideration in long term investments where as the market risk is more relevant in the short term. It is the market risk that can be managed and controlled to a certain extent, inflation risk cannot be controlled.
There are certain strategies that can be employed to mitigate the risk in a stock market. The strategies are as follows:
Ask Warren Buffet, the greatest investor of all time, what is your advice to investors and he says ‘don’t lose money!’ But stock market connotes risk and fortunately there are enough strategies for a wise investor to safeguard his money and ensure gain. A careful and timely exercise of these options helps you see of the risk involved.
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