Market risk is the risk that the value of your investments will rise and decline due to day-to-day fluctuations in security prices in financial markets. In other words, it is the risk associated with just owning a particular type of investment (e.g., stock) rather than the characteristics of any particular company. Fluctuations in market prices that contribute to market risk can be caused by a number of factors including company earnings reports, reports of government economic indicators, and political events.
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