principal risk

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.
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As a strategist and trader at Goldman Sachs, Dermot Harriss was in charge of the Quantitative Trading Group s high-frequency market-making platform, and later for the development of the first fully automated blind bid principal risk pricing workflow.
The Financial Conduct Authority has announced that it has hired a former HBOS principal risk adviser, Karina McTeague, to lead its supervision of retail banking operations.
As ever, our principal risk in the short term remains the threat of adverse market movements and it would be complacent, if not downright foolhardy, to assume increased stability in markets.
For me, the EIA should earn more than a traditional fixed annuity or something with zero principal risk, because there's a greater risk of income dispersion," he said.
Stephen Haynes, principal risk reduction officer, said: "The impact that a deliberately set fire can have on a business can be devastating and of course will have a wider impact on the local economy and job prospects.
The principal risk associated with the radiation dose resulting to a person from a CT procedure is the small possibility of developing a radiation-induced cancer some time later in that person's life.
During 1993 and 1994, D directed the Fund to invest several million dollars in debt instruments - principal risk securities - commonly known as derivatives.
On the other hand, you've taken some principal risk to the underlying portfolio, in addition to the credit risk of the portfolio and of the swap counterparty, as shown in the example.
Anything yielding more than a T-bill, CD, or money-market fund does so for a reason and carries principal risk.
MRA brings together Red McCombs and Rad Weaver of McCombs Partners, the insurance and marketing expertise and national relationships of Trey Watson of W Capital Partners, LLC, the existing business and insurance experience of Charles Newman of Principal Risk Advisors, Inc.
Those concerned about the plight of real estate and principal risk, can still participate solely in CMO residuals where the mortgage certificate collateral is guaranteed by government or government-sponsored agencies (GNMA, FNMA, or FHLMC) reducing this variable to its lowest possible level.
Principal Risk Factors: A Fund's shares will change in value, and you could lose money by investing in a Fund.
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