Write short notes on the following: Key risk in investing in Securities Market

Key risk in investing in Securities market Market risk or Systematic Risk: It means that an investor may experience losses due to factors affecting the overall performance of financial markets and general economy of the country. Unsystematic Risk: Unsystematic risk can be described as the uncertainty attached with a particular company or industry. Inflation risk: Inflation risk is also called as purchasing power risk. It is defined as a chance that the cash flows from an investment would lose their value in future because of a decline in its purchasing power due to inflation. Liquidity risk: Liquidity risk arises when an investment cannot be brought or sold quickly enough. Business risk: It refers to the risk that a business of a company might be affected or may stop its operations due to any unfavourable operational, market or financial situation. Volatility risk: Volatility risk arises as the companies' stock prices may fluctuate over time. Currency risk: It refers to potential risk of loss from fluctuate foreign exchange rates that an investor may face when he has invested in foreign currency or made foreign currency-traded investments.