When the stock market is depressed, stock transactions tend to decline, causing a reduction in business for securities firms. This is an example of ____ risk.
A)interest rate
B)credit
C)market
D)exchange rate

Question

Quizplus · Accepted Answer

The given situation involves a decline in the stock market, which affects the securities firms' business as the investors tend to hold their investments, leading to a reduction in stock transactions. This market risk is an inherent risk associated with the stock market, which impacts the investment returns due to market volatility, changes in economic conditions, political events, etc.

When the Stock Market Is Depressed, Stock Transactions Tend to Decline