Guide to Investment Risks

Eric Eden

Sep 5, 2025

0 views

Identifies and explains common risks associated with financial investing, providing context and mitigation strategies for each.

Create a guide for a novice investor on the common risks in financial investment. For each of the following risks (Market Risk, Inflation Risk, Liquidity Risk, and Credit Risk), provide: 1) A simple, one-sentence definition. 2) A real-world example that illustrates the risk. 3) A common strategy to help mitigate that risk. Use a table format for clarity.

About the author

Co-founder of Prompt Magic and ThinkingDeeply.ai Career Chief Marketing Officer