... or declining, are there losses? Price comparison with current quotes. Compare the offering price with the initial stock quotes. Often the SPO price is set at a discount to the market. If the offering is at a price above the average market price, the investor risks incurring a loss immediately after trading starts. The optimal situation is an offering price below or approximately equal to the market price (taking commissions and temporary fluctuations into account). Share issuance proportion. Determine what ...

... competition, and the team's readiness to scale to make an informed investment decision. Investing in startups can bring significant profits, but they are also associated with high risks. To reduce the likelihood of losses, it is important to understand what risks may arise along the investor’s path. This article discusses the main risks associated with investing in startups, ways to minimize them, as well as the specifics of evaluating startups at early stages. For a better understanding, examples will be given, including the Open ...

... to $25 billion. Why are investors buying up assets so actively, what risks does this pose for the market, and what should be done in this situation? Retail investors are investing in stocks at record levels: Why is this happening and what are the risks? Retail investors have set a new record for the volume of investments in the stock market, exceeding even the levels of the dot-com bubble. Despite the market turbulence, capital is being directed en masse into tech stocks, and the total inflow of funds into ...

... the oil at $80 and make a profit of $20 per barrel (excluding the premium). 2. Hedging Risks Options are often used to protect a portfolio from adverse price changes. This is especially important for long-term investors and companies exposed to market risk. Put Option Example: An investor who owns a stock might buy a put option to hedge against a fall in the stock's price. If the stock's price falls, the loss from the fall is offset by the gain from the option. Example: A company that imports oil might buy put options on oil to ...

... The price growth becomes a secondary concern. The value of these securities usually increases only slightly, which diminishes their appeal for short-term investors and traders. At the same time, these securities tend to have low liquidity, which helps investors mitigate overall portfolio risks. As asset prices decrease, dividend payouts tend to increase. The value of these securities rarely drops below a psychological threshold, acting as a sort of protective cushion for investments. Thus, the risk of losses and total obliteration of ...