Definition:
Market Risk
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Market risk refers to the potential for losses due to rising or falling market conditions such as interest rate.Changes in interest rates can cause companies and financial institutions to sustain substantial losses on any assets that must be sold or acquired or on any funds that must be borrowed or repaid.
Market risk is a risk to which nearly any business is susceptible. Depending on the nature of the business, some are more susceptible to market risk than others.
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