Most people think of stock market risk as the chance that they will lose money in a particular investment. Actually, the risk of investing in the stock market falls into many categories.
Market risk is the risk that the entire market will go down. When that happens, most of the stocks you own will go down too. The same is true for mutual funds. Buying shares in all companies listed on a stock exchange does not eliminate stock market risk. Think about it. Even if you invest in "the mark
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