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Funding a business
What risk comes to buying shares in an organization
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[QUOTE="Yusra3, post: 338486, member: 31907"] The main risk to buying shares in a company is that the value of those shares could decline, leading to financial losses. Specifically, if the company performs poorly due to declining sales, mismanagement, industry disruptions, lawsuits, or other issues, its stock price is likely to fall. Shareholders could potentially lose some or all of their principal if share prices drop low enough and they are forced to sell at the lower valuations. There is also the opportunity cost of money tied up in shares losing value instead of being invested elsewhere profitably. [/QUOTE]
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