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How to Manage Investment Risks
... may impact your investments. These risks encompass economic and political conditions, changes in legislation, and other global factors. For instance, an economic crisis or recession may lead to decreased profits for companies in nearly all sectors, which ... ... tax on income from deposits makes them less profitable). Political instability, revolutions, wars, and sanctions all impose risks on investors operating in affected regions, regardless of the condition of the specific companies involved.
Non-market risks are ...
Pre-IPO Market: Features, Stages, Risks, and Strategy
... of IPOs, pre-IPO transactions provide an alternative financing mechanism and market entry.
However, investing in pre-IPO requires a professional approach and attention to risks: liquidity shortages, evaluation challenges, and dependence on external factors. Seasoned investors must thoroughly analyze each deal, utilize risk consolidation opportunities (such as syndications or funds), and consider the nuances of Russian regulations.
Overall, pre-IPO can be an effective strategy in the portfolio of a long-term investor seeking to diversify investments and enhance overall ...
Moscow Exchange Index (IMOEX): what is it and how can an investor use it
... dynamics of IMOEX usually indicate growth of market capitalization of the companies included in it and increase of general investor confidence in the Russian economy. On the contrary, negative dynamics may indicate negative economic forecasts, geopolitical risks or other factors that reduce investment attractiveness of the Russian market.
It is important for investors to track not only the absolute value of the index, but also its change over time. Short-term fluctuations can be caused by various factors, including short-term speculation. However, long-term trends allow to assess the general direction of ...
How to conduct fundamental analysis?
... can include crisis scenarios and stress testing of the company for strength, but it is almost impossible to predict a specific sudden blow and its timing. Therefore, force majeure factors always remain an area of uncertainty. It is important for an investor to realize that even the most thorough analysis of indicators and factors does not provide a guarantee against the influence of external shocks. To reduce the risk of force majeure, diversification is usually recommended - distributing investments across different assets, countries and industries. Then an extreme local event will not destroy all capital. In addition, you should constantly monitor the news: ...
Venture Capital: A Guide for Investors and Entrepreneurs
... significantly increase the interest of investors. These can be the first users, pre-orders, a successful pilot project with a large client, or rapid audience growth with minimal marketing. Such traction confirms the viability of the idea and reduces the risk, demonstrating that the product is really needed by the market.
Venture investors evaluate a combination of these factors. The ideal startup for them is a team of enthusiasts offering an innovative solution for a huge market that has already proven its demand at least on a small scale. Of course, reality is far from ideal: some attract money on charisma and a promising ...