Capital risk意思

"Capital risk" is a term used in finance and economics that refers to the risk of losing some or all of an investor's capital when investing in an asset or a portfolio of assets. This risk can arise from various factors, including market volatility, credit risk, liquidity risk, and operational risk.

In the context of investments, capital risk is the potential for the investor's principal investment to be lost or to decline in value. This risk is a key consideration for investors, as it can have a significant impact on their financial well-being. Investors typically weigh the potential for returns against the level of capital risk when making investment decisions.

Capital risk can also be referred to as "equity risk" or "market risk," as it is a type of risk that is inherent in owning equity securities (stocks) or participating in financial markets. To mitigate capital risk, investors may diversify their portfolios, use risk management strategies, or invest in safer, more stable assets.