Market Risk

Market Risk This is inherent in the market, depending on how the economy and a particular segment of industry is behaving. If there is a business recession all companies will fare badly, and their profits will fall. Special circumstances often affect particular industries. Access to cable TV may affect the sales of VCR makers; a sudden rise in the inflation index may cause a recession in the luxury gods sector; and imposition of stiff excise duties or withdrawal of special benefits may result in drastic fall in profits of many companies

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