market risk

The risk inherent in dealing on a market where prices may change. The obvious market risks are buying on a market that subsequently falls and selling on a market that rises; these risks can be reduced by hedging (see hedge), especially by means of futures contracts or options, but they can never be eliminated. These forms of market risk are the obverse of the market opportunities that provide speculators with the chance of making a profit.

Accounting dictionary. 2014.

Look at other dictionaries:

  • Market risk — Risk that cannot be diversified away. Related: systematic risk * * * market risk market risk ➔ risk1 * * *    ► See Systematic Risk. * * * market risk UK US noun [C or U] FINANCE …   Financial and business terms

  • Market risk — Categories of financial risk Credit risk Concentration risk Market risk Interest rate risk Currency risk Equity risk Commodity risk Liquidity risk Refinancing risk …   Wikipedia

  • market risk — One of six risks defined by the Federal Reserve. The risk of an increase or decrease in the market value/price of a financial instrument. Market values for debt instruments are affected by actual and anticipated changes in prevailing interest… …   Financial and business terms

  • market risk — The risk inherent in dealing on a market where prices may change. The obvious market risks are buying on a market that subsequently falls and selling on a market that rises; these risks can be reduced by hedging (see hedge), especially by means… …   Big dictionary of business and management

  • Market Risk — The day to day potential for an investor to experience losses from fluctuations in securities prices. This risk cannot be diversified away. Also referred to as systematic risk . The beta of a stock is a measure of how much market risk a stock… …   Investment dictionary

  • market risk — rinkos rizika statusas Aprobuotas sritis kredito ir finansų įstaigos apibrėžtis Tikimybė, kad rinkos kintamieji – palūkanų norma, valiutos kursas, nuosavybės vertybinių popierių, biržos prekių kainos – pasikeis taip, kad elektroninių pinigų ir… …   Lithuanian dictionary (lietuvių žodynas)

  • market risk — rinkos rizika statusas Aprobuotas sritis draudimas apibrėžtis Nuostolių arba nepalankių finansinės padėties pokyčių rizika, atsirandanti tiesiogiai ar netiesiogiai dėl turto, įsipareigojimų ir finansinių priemonių rinkos kainų lygių svyravimo ir… …   Lithuanian dictionary (lietuvių žodynas)

  • market risk — rinkos rizika statusas T sritis turto vertinimas atitikmenys: angl. market risk ryšiai: žiūrėk – sistemos rizika šaltinis Tarptautiniai vertinimo standartai (2011) …   Lithuanian dictionary (lietuvių žodynas)

  • market risk — noun a) The risk that the value of an investment will decrease due to moves in market factors. b) Systematic risk …   Wiktionary

  • market risk — Fin risk that cannot be diversified away, also known as systematic risk, which is measured by beta. Non systematic or unsystematic risk applies to a single investment or class of investments, and can be reduced or eliminated by diversification …   The ultimate business dictionary

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