Equity Risk Bishesh Prajapati

Market risk There are four major types of market risk: Interest Rate Risk Equity Price Risk Foreign Exchange Risk Commodity Price Risk

Equity risk The financial risk involved in holding equity in a particular investment It refers to equity in companies through the purchase of stocks It is the risk of loss due to change in prices Equity investment include common and preferred stocks, as well as diversified portfolio The risk of loss due to the change in volatility of individual equity instruments and equity indices While talking about equity risk we need to know about systematic and unsystematic risk

Equity risk management Build up adequate exposure to market Formulate transparent policy & procedure for investment in shares Formation of investment companies Review of investment portfolio

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