An investment portfolio is a selection of different stocks that is designed to diversify away specific risk (unsystematic risk). That is a bit like saying don't put all your eggs in one basket. The idea of diversification is that if one investment has a bad time you will always have another investment which will do well in the circumstances so they counter-balance each other in terms of specific risk.
Of course there is, unfortunately, market risk (systematic risk) which cannot be diversified away. That is, for example, if the whole global economy and markets crash then more or less every asset class will suffer.
The price of shares is determined by
1) supply and demand for those shares
2) external factors like a war breaking out, bad news on the economy like higher unemployment, higher inflation, etc
3) internal factors like the ceo quitting or getting very sick, losing a major customer, etc
Investment portfolio is a list of the stocks that person owns
Some shares are riskier than others. Penny stocks are a gamble. Blue chip stocks are a lot safer. Mid cap stocks are somewhere in between
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It would help if you start with defining your terms to clear confusion.
Risk includes the possibility of losing some or all of the original investment. Different versions of risk are usually measured by calculating the standard deviation of the historical returns or average returns of a specific investment. A high standard deviation indicates a high degree of risk.
http://www.investopedia.com/terms/r/risk...
10 Risks That Every Stock Faces
http://www.investopedia.com/articles/sto...
Measuring And Managing Investment Risk
http://www.investopedia.com/articles/08/...
If you want information about any company or stock, including Tesla Motors, go to Yahoo Finance
http://finance.yahoo.com/
Type in the company name or ticker symbol in the Quote Lookup box; I'll use TSLA, takes you here
http://finance.yahoo.com/q?s=tsla&ql=1
From this page, the closing price of Tesla today was:
Tesla Motors, Inc. (TSLA)
209.97 Up 16.33(8.43%)
The above quote says the current price of Tesla is 209.97 per share, up $16.33 for the day (TSLA earnings were reported at the open), and the stock price is up 8.43% today.
How can buying shares risky? Need about 2-3 points of how it can be risky and also what is it meant by 'Investment Portfolio'?
Need these answers for school tomorrow!
Thanks :)
