The risk introduced through financing that increases with the proportion of debt in a firm's capital structure.
It is the uncertainty introduced by the method by which the firm finances its investments. If financed fully by equity shares, its holders incur only business risk. If the firm also borrows money, shareholders also incur financial risk.
Additional risk borne by shareholders because of a firm's use of debt.
Uncertainty in financial transactions.
The risk that a firm may not be able to meet its financial obligations.
Investing fundamental. It is the possibility that a security issuer will run into financial difficulties and not be able to meet obligations to investors.
The portion of total corporate risk over and above the basic business risk that results from using debt.
The risk associated with the safety of one's principal.
The risk that a company will not be able to repay the money owed to the holders of their bonds and shares. rowth Stock — A stock that had rapid earnings in recent years and is expected to grow at above average rates in the future. Growth stocks are supposed to have a high P/E ratio. edge — A protection against the risk of unfavorable price movements on an existing security. Various hedging strategies exist to offset market risk.
The risk that a firm will be unable to meet its financial obligations.
The degree of uncertainty of realizing expected future returns of the business resulting from financial leverage. See BUSINESS RISK.
Risk related to the amount of debt used in financing a company.
The risk that a debtor will default on the payment of an obligation. This risk often affects bond investors.
The risk that a business will be unable to pay its financial obligations on time.
The risks associated with making an investment; the probability of recovering that investment plus an appropriate return.
The risk that the cash flow of an issuer will not be adequate to meet its financial obligations. Also referred to as the additional risk that a firm's stockholder bears when the firm utilizes debt and equity.
The uncertainty resulting from the financing of an investment
Financial exposure to uncertainty.
Risk associated with monetary investment in an offering.
The portion of total risk associated with the use of financial leverage in the capital structure of a business.
The risk that a company will not have adequate cash flow to meet financial obligations.
In essence financial risk is any risk associated with money.