Risk involvement in a share

 This is a very important factor you believe in risk when you want to invest in the share market. There is no guarantee of what percentage of capital gain you can get, where and when the share price stops in up end or low end and how long it takes to get the profits. It is true no company or institute can guarantee. However you can measure the risk in various ways. That's why it is essential to do some home work on a company before you invest. The home work should be calculating earnings per share, total debt, relative price strength, profits margins, volumes, industry leader and so on. You can also reduce the risk by diversifying the correlation between a share and a market index. A less risk taker has options to invest in board or a company that provides dividends at the end of year. However, investors need to measures first and it should be high enough to compensate the investors for the perceived risk of the investment. Risk is contrary to the positive profit but there is also bright side. Talking on greater risk demands a greater return on the investment.