Investment risks refer to the potential financial losses or variability in returns that an investor may face when investing in various assets or securities. These risks can stem from a multitude of factors, including market fluctuations, economic changes, interest rate changes, credit defaults, and geopolitical events.
Investment risks can be categorized into different types, such as market risk (the risk that the value of an investment will decrease due to market conditions), credit risk (the risk that a borrower will default on payments), liquidity risk (the risk of not being able to sell an asset quickly without a significant loss of value), and operational risk (the risk of loss due to failures in internal processes or systems).
Understanding investment risks is crucial for investors, as it helps them make informed decisions, assess the risk-reward profile of various investment opportunities, and develop strategies to mitigate potential losses. Assessing and managing these risks effectively is a key aspect of successful investing.
Investing in unprofitable businesses can be a thrilling yet risky venture, and biotech companies like Vir Biotechnology often find themselves at the heart of this precarious balance. Vir Biotechnology, a…