Camilla O. McRory, Attorney at Law

Investment Risk, Explained

There is no such thing as a risk-free investment. Stocks, bonds, mutual funds and exchange-traded funds can lose value, even their entire value, if market conditions sour. And even conservative, insured investments, such as certificates of deposit (CDs) carry their own kind of risk: inflation risk (more on that later).

Because investment risk is a given, it is up to you to understand those risks so that you can confidently decide what to do with your financial assets.

Learn more about common types of investment risk, from FINRA.