The risk characteristics of the securities market are mainly reflected in the volatility, uncertainty and instability of the securities market. This is determined by the nature of securities and the complexity of the operation of the securities market. The securities market is the product of the high development of commodity economy. Due to the complexity of the operation of the securities market and the huge fluctuation and uncertainty of the securities price, the securities market is a high-risk market.
To sum up, the risks that may be encountered in entering the securities market are:
(1) Market price fluctuation risk. In the big price fluctuation, blind securities trading often brings huge losses to investors, especially short-term investors.
(2) Operational risks of listed companies; The operating risk of listed companies is risky in itself, and there is great uncertainty in their operating performance, which will directly affect the market price of their stocks.
(3) Policy risk; The introduction or adjustment of each policy and regulation will have a certain impact on the securities market, and some even have a greater impact, thus causing greater market fluctuations.
2. What are the systemic risks?
(1) Policy risk
The government's economic policies and management measures may cause the loss of securities returns, which is particularly prominent in emerging stock markets. Changes in economic policies can affect changes in corporate profits and bond returns; Changes in securities trading policies can directly affect the price of securities. Therefore, every introduction or adjustment of economic policies and regulations will have a certain impact on the securities market, and some will even have a great impact, thus causing huge fluctuations in the market as a whole.
(2) Market risk
Market risk refers to the possible loss caused by the change of stock price, which comes from the price fluctuation caused by the imbalance between supply and demand of buyers and sellers in the market. Market risk is the most common and universal risk in securities investment, and it is also the most difficult risk for investors to deal with. When the stock market continues to rise and the stock price has deviated from the reasonable value area of the stock, the bubble is produced. The rise of stock price depends on the accumulation of funds, and trend speculation replaces value investment. Once the bubble bursts, it will often lead to unilateral continuous decline, which has been proved in the past stock market crashes around the world, and this is also an unavoidable and inevitable risk for market participants.
(3) Interest rate risk
Interest rate risk refers to the possibility of stock income loss due to interest rate changes. Stock prices are generally inversely proportional to interest rates. When the interest rate rises, the stock price will fall. On the contrary, the stock price will rise. This is because the interest rate is low, and many people are willing to withdraw their bank deposits to buy bonds and stocks. If interest rates rise, people are willing to turn to savings. Rising interest rates may also increase the production costs of enterprises and reduce profits, thus leading to a decline in stock prices. However, under certain conditions, the two are influenced by other factors, or they may be in direct proportion, which should be analyzed in detail.
(4) Exchange rate risk
Exchange rate risk refers to the possible losses caused by foreign exchange rate changes. When investing in securities issued in foreign currencies, such as B shares, investors must bear additional currency exchange risks. For listed companies, the appreciation of local currency is beneficial to enterprises whose production and operation are mainly imported raw materials, and is not conducive to enterprises whose products are mainly exported.
(5) Purchasing power risk
Purchasing power risk refers to the possibility of loss caused by the decline of investors' purchasing power due to inflation. In real life, due to rising prices, spending the same money may not necessarily buy the same goods in the past. This price change leads to the uncertainty of the actual purchasing power of funds, which is called purchasing power risk, or inflation risk. The uncertainty of investors' real rate of return caused by inflation. Inflation makes the production cost of enterprises rise, partly devouring the profits of enterprises, leading to the decline of the company's share price and affecting the investment income of investors.
3. How to prevent systemic risks?
Systematic risk has a great influence on the stock market, and it is generally difficult to resolve it by market behavior. However, savvy investors can still predict and prevent in advance and adjust their investment strategies from public information and understanding of the country's macro-economy. In the period of inflation, we should pay attention to the goods with high price increase in the market and choose the enterprises with high profit level and ability from the enterprises that produce such goods. When the inflation rate is unusually high, preserving value should be the primary factor. If you can buy stocks of products with value preservation (such as gold mining companies, gold and silver manufacturing companies, etc.). ), you can avoid the purchasing power risk brought by inflation.
4. What are the unsystematic risks?
(1) financial risk
Financial risk refers to the risk caused by unreasonable capital structure of listed companies, that is, the risk that companies may lose their solvency. The main factors that cause financial risks are the ratio of capital to liabilities, the term of assets and liabilities, and the debt structure. Investors should pay attention to the analysis of the company's financial statements when investing in stocks.
The financial risk of listed companies with small loans and bonds is low; The financial risk of stocks of companies with large loans and bonds is high. If a listed company holds high-risk assets in its investment, when this part of the asset bubble bursts, the share price of the listed company will also fall due to this influence. At the end of February 2007, some listed companies in the United States invested in subordinated debt, which dragged down their share prices, resulting in a serious decline in the assets of public shareholders holding shares in the company.
(2) Operational risk
Operational risk refers to the possibility that listed companies' operational mistakes will bring losses to investors. Business risks can be divided into internal reasons and external reasons.
Internal causes refer to the loss of profits caused by decision-making mistakes or internal management problems of listed companies. Investors can't get the expected return, sell stocks and push the stock price down.
The external cause of business risk is the uncertainty of stock investment income caused by the fluctuation of enterprise profit caused by the change of market and competitors or the adjustment of industrial policy.
Enterprise risk can be measured by the growth rate of enterprise income. The more stable the income and income growth rate of an enterprise, the smaller the business risk, and vice versa.
Before buying stocks, we should carefully analyze the financial reports of listed companies, analyze the growth ability, profitability and capital composition of enterprises, and at the same time pay attention to the indicators such as business ability and technology development ability of enterprises. If these indicators are relatively high, it means that the company has a good prospect. Taking the stocks of such listed companies as investment targets has great certainty of success.
(3) Credit risk
Credit risk, also known as default risk, refers to the possibility of not paying principal and interest to stock holders on time and causing losses to investors. This kind of risk is mainly aimed at creditor's rights investment varieties, and only the bankruptcy of the company will appear for stocks. The direct cause of default risk is the poor financial situation of the company, and the most serious is the bankruptcy of the company.
(4) Moral hazard
Moral hazard mainly refers to the possibility that the unethical behavior of managers of listed companies will bring losses to shareholders of the company. The relationship between shareholders and managers of listed companies is a principal-agent relationship. Because the goals pursued by managers and shareholders are not necessarily the same, especially in the case of asymmetric information between the two parties, the behavior of managers may cause damage to the interests of shareholders.