Risk Ratings

Ever wondered how risky a stock actually is? Letโ€™s find out ๐Ÿค 

Risk will always influence your investing decisions ๐Ÿ“Š

This is because you should always understand your comfort with losing and gaining money ๐Ÿค”

Risk is related to volatility, or how drastically the price of a stock changes over time! ๐Ÿ“Š

Stocks are usually compared to SPY since itโ€™s the benchmark for the entire stock market ๐Ÿ˜ฎ

Low-risk stocks change less than the S&P 500 ๐Ÿง

High-risk stocks change way more than the S&P 500 ๐Ÿคฏ

The riskier a stock gets, the greater potential profits AND losses ๐Ÿ‘€

The same is true vice versa ๐Ÿ”„

Lower risk stocks might be more stable, but may have less profit opportunities ๐Ÿค”

Risk is also influenced by market conditions and economic events ๐Ÿ“Š

You can find risk ratings right below the stockโ€™s price graph! ๐Ÿ”

Risk is on a low to high scale and each stock will have a marker for where it lands! ๐Ÿ“

As an investor, it's important to compare your risk tolerance and a stockโ€™s risk level to invest at a safe comfort level ๐Ÿš€

Test your knowledge

Which type of stock is less likely to fluctuate in price

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What does NOT influence a stockโ€™s risk rating?

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Why should you pay attention to risk ratings?

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What's next?

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