Personality Types – Different Types of Personality
Let us go through the following personality types: The Duty Fulfiller – Such individuals take their roles and responsibilities seriously and perform whatever tasks are assigned to them. Duty fulfillers are serious individuals and believe in honesty and a peaceful living. They never do anything which is not good for themselves, their job, families or […]
Essential Steps Involved in Building High-Performance Teams
High-Performance teams ensure the long-term success of an organization by delivering excellence in business outcomes through collaborative teamwork. Such teams rarely are formed naturally, rather they are formed and managed with certain strategic intent. Given below are some of the crucial steps involved in the formation of High-Performance teams: Fostering Collaboration amongst the team members […]
Understanding Organization and Organization Culture
What is an organization ? An organization is nothing but a common platform where individuals from different backgrounds come together and work as a collective unit to achieve certain objectives and targets. The word organization derived from the Greek work “organon” is a set up where people join hands to earn a living for themselves […]
Disadvantages of Securitization as an Alternative to Reinsurance
In the previous article, we have already seen what securitization is in the context of reinsurance. We have also seen how securitization can be used as an alternative to reinsurance and the reasons behind the sudden increase in the volume of insurance-related securitizations around the world. It is true that catastrophe-related securities have started proliferating […]
The Perils of Leaders and Their Personality Cults in Times of Authoritarian Rulers
The Worldwide Rise of Strongmen and the Dangers of Personality Cults World over, there is the rise of strongmen and authoritarian leaders. Starting with President Trump of the United States, and including President Putin of Russia, as well as India’s Prime Minister, Narendra Modi, and extending to Brazil and Philippines, there is no dearth of […]
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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