What is a Downside?
Downside refers to an's potential loss in value.
How Does a Downside Work?
Let's pretend you purchase 100 shares subsequently fall to $1 per share, your downside equals ($5-$1 = $4) per share, or $400.of Company XYZ at $5 per share, for a total of $500. If the
The reverse is true for people who short stocks: For them, stock price falls.comes when the
Why Does a Downside Matter?
Downside is the fundamental motive for avoiding any investment -- and with the risk associated with that investment. Higher-risk generally have more downside (but they have more , too); low-risk investments generally have less downside and are thus primarily concerned with preserving the value of the original investment.. The size of the downside, of course, varies with the
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.
Read This Next
When a person asks you, "How did the market do today?" it's safe to assume that he or she is looking for a...Read More →