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Empirical Study on Price-Risk Perception of Investors in Stock Market

International Journal of Banking, Risk and Insurance

Volume 3 Issue 2

Published: 2015
Author(s) Name: Sanjeev Chowdhury, Nitin Tiwari | Author(s) Affiliation:
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Abstract

In the most basic sense, risk is defined as the chance of financial loss. More formally, risk may be defined as the variability of returns associated with a given asset. Investors in commodity markets use various means to minimize the risk. Hedging is one way of minimizing the risk, at the same time it can also help in locking the profits. The purpose of the present study is to examine if there exists a correlation between the type of securities and the risk associated with it. The study aims to be useful for analyzing the most preferred means of securities buying and uncover investor objective behind purchasing those securities. For the purpose of this study a questionnaire was administered and data were collected from a stock trading house located in Delhi.

Keywords: Risk, Futures, Options, Debenture, Bonds

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