Risks in Shares Trading
1.
No Dividend Payment
Company may not pay
dividend because the company are not legally bound to pay the dividend and
dividend payment depends on the profitability of the entity and management
discretion.
2.
Capital Loss
Share holder may suffer capital loss because
shares traded in equity market at market price and market prices fluctuate on
daily bases. No one in the world can predict the right time of buying and
selling and market fluctuation with absolute accuracy.
3.
Liquidation
The company may liquidate and in that case equity holder will
be paid in last out of the asset of the company.
