principal risk

(redirected from Principal Risks)

Principal Risk

The risk that an investment will decline in value below the amount one invested. For example, if one buys a security for $10 per share, there is a principal risk that it will decline to $8 per share and never recover. Principal risk is virtually non-existent for bank accounts, which are guaranteed by the FDIC up to a certain amount. However, it is significant for investments like stocks and, to a lesser extent, bonds.

principal risk

The possibility an investment will be worth less when it is sold than when it was purchased. Principal risk is high for common stocks compared to most fixed-income investments such as bonds, preferred stock, and certificates of deposit.
References in periodicals archive ?
Such factors include, but are not limited to, those described under Item 3.D Principal risks and uncertainties in the company's Annual Report on Form 20-F for 2018.
She also advises her clients during the policy placement and renewal process to ensure that they obtain insurance appropriate for the principal risks presented by their businesses.
RoSPAs independent panel of experts includes representatives from the Health and Safety Executive, the Institution of Occupational Safety and Health and the Trades Union Congress who commended Briggs Defence for complying with control measures governing principal risks and action on health issues.
Launched on Thursday at the 34th Meeting of the Asean Committee on Disaster Management, the study, 'Ready for the Dry Years: Building Resilience to Drought in South-East Asia,' offers clear analysis on the principal risks in the region.
It offers clear analysis on the principal risks in the region and was released against the backdrop of the ongoing drought in almost all countries in Southeast Asia, with social and economic impacts already being felt strongly in Cambodia, the Philippines, Thailand and Vietnam.
Launched today at the 34 th Meeting of the ASEAN Committee on Disaster Management, the study Ready for the Dry Years: Building Resilience to Drought in South-East Asia offers clear analysis on the principal risks in the region.
DMS should assume underlying debt management, total debt stock, sources of loans, principal risks associated with loans, analysis of the sustainability of debt and debt servicing framework.
"The principal risks and uncertainties facing the company concern the price of copper.
Spillovers from renewed external pressures interacting with domestic vulnerabilities are the principal risks," it had said.
In their latest accounts, the Magpies cite as one of the "principal risks and uncertainties" the club faces going forward as being "changes to rules and regulations...
In its financial report, RAK Petroleum's chairman said principal risks and uncertainties facing the company remain largely unchanged from 2016.
ONE particularly interesting part of the accounts is the 'principal risks and uncertainties' section, which always feature in these documents.
Full browser ?